Karnataka: 10,800 Liquor Shops to Remain Closed on November 20; Wine Merchants Association Alleges Corruption in Excise Department

Bengaluru: All private liquor shops in Karnataka will remain closed on November 20, according to an announcement made by the Federation of Wine Merchants Association of Karnataka on Thursday. This move, supported by 10,800 liquor license holders in the state, aims to protest alleged corruption in the Excise Department and the government’s lack of response to their demands. Government-run liquor shops, however, will remain open during this one-day closure.

Demand for Amendment in Excise Act

The Association has called for an amendment to Section 29 of the Karnataka Excise Act, which gives excise officers the authority to cancel or suspend licenses. B. Govindraj Hegde, the general secretary of the association, urged the Chief Minister to hold a meeting to address these issues. Hegde argued that the Excise Department should be merged with the Finance Ministry to address budget-related concerns and curb corruption.

Request for Higher Profit Margin and Additional Facilities

The Wine Merchants Association has also requested that the profit margin for retail liquor sales be increased to 20%. Additionally, it seeks permission for CL-2 license holders to allow alcohol consumption on their premises and for CL-9 license holders, such as bars and restaurants, to set up additional counters.

Hotel Association Opposes the Decision

The Karnataka State Tourism and Hotel Owners Association has opposed the closure. Association Secretary Govinda Kaulagi criticized the Wine Merchants Association’s decision as unilateral, stating that no consultation was held with them. He argued that the hotel industry has invested significantly, which supports wages for workers and covers operating expenses. The association also called for a reduction in annual fees and demanded a 20% profit margin.

Denial of Election Bribery Allegations

The Wine Merchants Association’s General Secretary, Hegde, dismissed the accusation made by Prime Minister Narendra Modi at a rally in Maharashtra, where he alleged that Karnataka’s liquor merchants paid a bribe for election purposes. Hegde clarified that none of the association’s office bearers had discussed any form of bribery.

Summary

On November 20, 10,800 liquor shops across Karnataka will close, while government-run shops will remain open. The Wine Merchants Association is calling for reforms in the Excise Department, while the Hotel Owners Association is opposing the strike.