Karnataka liquor stores plan statewide bandh on November 20 amid corruption charges on excise dept

Karnataka's liquor stores plan a shutdown on November 20 to protest alleged corruption in the Excise Department.

Karnataka's liquor stores are preparing for a statewide shutdown on November 20, as over 10,800 licensed establishments join together to protest alleged corruption in the state’s Excise Department, according to Karnataka Wine Merchants Federation representatives. The bandh aims to spotlight what the merchants say is rampant corruption and unfair competition that is hurting their businesses, news agency PTI reported.

With 85-90% participation expected, merchants seek reforms to address unfair competition and unsustainable business practices exacerbated by new licenses. (REUTERS)

Govindaraj Hegde, General Secretary of the Federation, stated that participation is expected to reach between 85 and 90 percent among liquor license holders, marking a significant show of unity across the industry. The situation has become unmanageable, Hegde said, addressing the growing frustration within the merchant community. The government continues to issue new licenses, disregarding existing rules and creating a fiercely competitive environment that many of us cannot sustain, he alleged. Hegde also explained that established shops, which together bring in approximately ₹38,000 crore annually, are struggling as a result.

"Things are getting out of hand, the government is unleashing uncontrolled competition by giving new licences without any regard to the prevailing rules. We provide a business of 38,000 crores per annum in the state, but many of the dealers are complaining about not being able to sustain their business due to corruption in the department," Hegde said, as quoted by the agency.

According to the merchants, the unchecked expansion of licensed shops has compounded their challenges, with many small to medium license holders saying they are unable to compete or keep up financially. The Federation claims that many businesses are being forced into an unsustainable cycle to run their shops.

This isn’t the first time Karnataka’s wine merchants have voiced concerns over departmental corruption and licensing practices. However, this large-scale bandh marks a significant escalation, highlighting the industry’s determination to see meaningful reforms implemented. Hegde voiced concerns regarding the same, emphasizing the merchants' frustrations with what they see as the government’s failure to address the impact of new licenses on their livelihoods.

With this shutdown, wine merchants hope to not only draw attention to their grievances but also prompt a re-evaluation of licensing policies to foster a fairer, more sustainable business environment.

(With inputs from PTI)