A massive political storm has hit Karnataka as the State Wine Merchants' Association levels explosive allegations of a ₹6,000-crore scam within the Excise Department. Representing liquor traders across the state, the association claims that systemic corruption has flourished over the last two years under the Siddaramaiah-led Congress government. The Association President GuruSwamy announcing plans to escalate the matter directly to national Congress leaders Mallikarjun Kharge and Rahul Gandhi, bypassed local channels they no longer trust.
At the heart of the controversy is the issuance of CL-7 licenses, which allow hotels and boarding houses to serve alcohol. According to GuruSwamy, these licenses — once standard administrative permits — have become high-priced commodities. He alleges that in Bengaluru alone, obtaining a license now requires bribes ranging from ₹1 crore to ₹2 crore, depending on the locality. The association contends that this money isn't just pocketed by a few individuals but is funnelled through an organised hierarchy involving the Excise Minister and a network of high-ranking officials.
Excise Minister RB Timmapur has dismissed the claims as baseless, challenged the association to produce concrete evidence, and promised to address the matter formally on the floor of the House. Despite these dismissals, this isn't a new grievance. The association previously flagged a ₹700-crore scam in a 2024 letter addressed to the Governor and the Lokayukta, specifically naming Timmapur and dozens of departmental officials — including deputy commissioners and inspectors — as participants in the alleged bribery ring.
While the Chief Minister has reportedly promised meetings to address these concerns in the past, the Wine Merchants' Association says it is "completely fed up" with broken promises and a system they describe as pay-to-play. With the stakes now sitting at an alleged ₹6,000 crore, the pressure is mounting on the state government to provide more than just a verbal rebuttal to these mounting accusations of institutionalised graft.
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