Fresh allegations of large-scale financial irregularities have surfaced in West Bengal’s liquor trade, with industry representatives claiming that unaccounted charges and systemic exploitation have led to misappropriation amounting to nearly Rs 100 crore. West Bengal Liquor Association has alleged that retailers across the state were compelled to pay a “beer carrying cost” — a charge not reflected in official invoices or permitted under existing regulatory frameworks. According to the Association, these payments were collected informally, raising serious questions about transparency and accountability in the sector.
The Association’s secretary, Bijan Patra, stated that despite repeated attempts to bring the matter to the attention of authorities, their concerns were ignored. He further alleged that retailers were subjected to intimidation and threats when they raised objections. Following recent political developments in the state, the Association has now formally submitted a complaint to senior officials, including the Additional Chief Secretary of the Finance Department and the State Excise Commissioner.
The controversy centres around the functioning of the state-run beverage distribution system. The West Bengal State Beverages Corporation Limited (WBSBCL), established in 2017, was tasked with overseeing wholesale liquor distribution. Under the rules outlined in the official gazette notification, the responsibility for delivering stock to licensed retailers lies with the corporation itself, and there is no provision for charging any additional “carrying cost.”
However, retailers claim that since 2023, they have been required to pay an extra Rs 10 per crate of beer under this unofficial head. Notably, these payments were neither supported by written orders nor reflected in official billing documents. The issue drew further scrutiny when the Income Tax Department reportedly questioned licensees about such payments, indicating potential financial irregularities.
According to the Association, distributors justified the charge by citing operational losses, though no formal directive was issued. Retailers maintain that West Bengal is the only state where such a practice exists.
In addition to the carrying cost, retailers have raised concerns over other charges introduced during the COVID-19 pandemic, including a “Special Purpose Fee” per bottle and a “round-off” charge applied during billing. These cumulative costs, they claim, have significantly reduced their profit margins to as low as 3.5–4 per cent, threatening the sustainability of their businesses. The Association has demanded that margins be increased to at least 10 percent and has called for stricter regulation of liquor license issuance, particularly in rural areas.
The issue has also drawn attention from corporate stakeholders. IFB Agro Industries Limited recently wrote to the National Stock Exchange of India, citing “illegal interference” by state excise authorities that allegedly disrupted its liquor business operations. The company has called for an independent investigation into the matter.
The letter also referenced a 2020 incident at IFB’s Noorpur plant in South 24 Parganas, where operations were temporarily halted following vandalism and attacks on employees. Allegations at the time linked the incident to associates of Jahangir Khan, a former leader of the Trinamool Congress. The plant resumed operations shortly thereafter under police protection.
Further claims have been made by trade union representatives, including Shamik Lahiri, who alleged that businesses were subjected to extortion demands during the tenure of the previous administration. These allegations also mention the names of senior political figures, including Mamata Banerjee and Abhishek Banerjee, though no official response has been issued regarding these specific claims.
Industry stakeholders argue that prior to 2017, when the government did not directly control the liquor trade, the business environment was comparatively stable. However, since the introduction of the state-controlled distribution system, retailers and manufacturers alike have reported increasing financial pressure and operational challenges.
With mounting allegations and growing demands for accountability, calls for an independent probe into the functioning of the liquor trade in West Bengal are intensifying. Whether these claims will translate into formal investigations or policy changes remains to be seen.
Follow us
