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At an election rally in Akola, Maharashtra, PM Modi had accused Congress of collecting up to Rs 700 crore from liquor shop owners in Karnataka and funnelling it to election-bound states like Maharashtra and Jharkhand
Karnataka Chief Minister Siddaramaiah said he would “quit politics” if the prime minister could prove that the Karnataka Congress was involved in an excise department scam where Rs 700 crore was allegedly mobilised and sent to Maharashtra and Jharkhand. (PTI)
The Karnataka Wine Merchants’ Association is an upset lot.
This follows Prime Minister Narendra Modi’s remarks at an election rally in Akola, Maharashtra, where he accused the Congress of collecting up to Rs 700 crore from liquor shop owners in Karnataka and funnelling it to election-bound states like Maharashtra and Jharkhand.
“We only appealed to the government to address our issues, including our request to bring the excise department under the finance ministry and concerns with the current excise minister. Where is the question of us giving money or funding elections? This is wrong and preposterous,” said Govindraj Hegde, secretary of the Karnataka Wine Merchants’ Association.
Hegde added that liquor merchants make only a 10 per cent profit and have been seeking at least a 20 per cent margin to help generate revenue for the state. He called it “unfair” for their grievance to be used as a political pitch.
PM Modi had accused Congress-ruled states like Himachal Pradesh, Telangana, and Karnataka of acting as “ATMs” for the party’s “royal family,” adding that in the name of elections, Congress has doubled its “vasooli” in Karnataka and Telangana.
In response, Karnataka Chief Minister Siddaramaiah said he would “quit politics” if the prime minister could prove that the Karnataka Congress was involved in an excise department scam where Rs 700 crore was allegedly mobilised and sent to Maharashtra and Jharkhand.
“I am surprised to see how the prime minister of this country can lie like this. I challenge Narendra Modi. If he can prove these allegations, I will retire from politics. But if he cannot, then he should step down,” Siddaramaiah said.
The Wine Merchants’ Association had recently levelled serious allegations of corruption within the state excise department, including against excise minister RB Thimmapur and his office, claiming that they had been soliciting bribes from liquor vendors under the pretext of “monthly payments” for transfers and prime postings. A letter addressed to Siddaramaiah was later submitted by an RTI activist to the Raj Bhavan as well.
The association specifically sought the removal of Thimmapur and his officials, accusing them of taking bribes for excise licences and transfers. They alleged officials granted CL7 bar licences in exchange for bribes ranging from Rs 30-70 lakh in violation of regulations. Over the past year alone, the excise department allegedly issued 1,000 illegal licences, resulting in Rs 300-700 crore in alleged corruption.
“Our intention was only to highlight the rampant corruption in the department, which has spanned several years across governments, and we wanted CM Siddaramaiah’s intervention to curb these extortion practices,” said another association official who requested anonymity.
The association has announced a state-wide protest on November 20 against the corrupt practices and plans to close all liquor outlets across the state.
“We had one round of talks with the additional chief secretary, excise commissioner, and other officials. We will be meeting the chief minister shortly. However, we will proceed with our protest as we want our list of demands addressed,” said S Guruswamy, president of the association.
With corruption allegations such as the Valmiki Corporation and MUDA scams in focus, the fresh claims of corruption within the excise department have put Congress on the back foot.
The BJP in Karnataka seized on the issue, protesting to highlight what it called “yet another corruption scam” under Congress rule, this one allegedly running into over Rs 700 crore.
BJP leader BY Vijayendra accused the Siddaramaiah-led government of turning corruption into “a way of life”. “Thimmapur is collecting Rs 180 crore each year in bribes from liquor outlets — all supposedly for ‘election purposes’,” he said.
Vijayendra further alleged that bribes are collected according to a set “rate card,” with a CL7 bar licence costing between Rs 30 and Rs 70 lakh, and nearly 1,000 illegal licences issued. “This isn’t just corruption — it’s a business, bringing in Rs 700 crore annually,” he said.
Responding to the allegations, Thimmapur earlier said he has no knowledge of any transfers or bribes. “Whatever has been done is routine official work. If anyone is seen indulging in it, show it to me, and we will take action,” he said.
