Explained: The bribery case rocking Karnataka's Excise Department

Leader of the Opposition R Ashoka alleged that the scam was worth between Rs 5,000 crore and Rs 6,000 crore and that bribes were collected at fixed rates for different categories of licences.
RB Timmapur
RB Timmapur
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The Karnataka government is facing fresh political turmoil following allegations of large-scale corruption in the Excise Department, with the Opposition BJP and Janata Dal (Secular) accusing Excise Minister RB Timmapur of presiding over a massive bribery racket linked to liquor licensing and transfers of officials.

The issue resurfaced sharply after Lokayukta officials arrested Deputy Commissioner Jagadeesh Naik, Superintendent KM Thammanna and constable Lakkappa Gani for allegedly accepting a bribe of Rs 25 lakh. The arrests were made on January 17 following a complaint that these excise officials had demanded money to clear a CL-7 bar licence and a microbrewery licence in Bengaluru. According to the Lokayukta police, the initial demand was Rs 80 lakh, which was later negotiated.

In his complaint, the applicant alleged that after completing all formalities and paying official government fees, he was told that additional money had to be paid and that the amount would reach the minister and other officials. He alleged to have recorded conversations with the officials and submitted the audio recordings as evidence. Based on this, an FIR was registered under the Prevention of Corruption Act, and the three officials were arrested while allegedly accepting the bribe.

Following the arrests, the Karnataka government suspended Jagadeesh Naik and KM Thammanna on January 21, stating that the allegation of accepting a bribe had been established prima facie. 

Building on these developments, the BJP and JD(S) alleged that liquor licences and departmental postings were being issued in exchange for bribes running into crores of rupees. Leader of the Opposition R Ashoka alleged that the scam was worth between Rs 5,000 crore and Rs 6,000 crore and that bribes were collected at fixed rates for different categories of licences. According to him, CL-7 licences, which allow hotels and boarding houses to serve liquor, involved bribes of more than Rs 1 crore each, while other licence categories and microbrewery permissions attracted similarly high amounts.

Ashoka and other BJP leaders also alleged that money was collected for transfers and postings within the Excise Department, including senior positions such as Deputy Commissioners. They alleged that these collections took place on a monthly basis and that senior political leadership was aware of the racket. The Opposition has further alleged that the funds were diverted for election-related purposes, though no evidence has been made public to support these allegations.

Around the same period, the Karnataka Wine Merchants’ Association reiterated its long-standing allegations of corruption in the Excise Department. The association alleged that bribes were routinely demanded for issuing CL-7 licences in Bengaluru, with the amounts varying depending on the location. Its president, Guruswamy, alleged that the money was shared between officials and political leaders and said repeated complaints to the Chief Minister had not led to corrective action. 

The association had also written to the Chief Minister, the Governor and the Lokayukta in 2024 alleging a Rs 700 crore liquor scam and naming several excise officials across ranks.

The arrests and subsequent allegations led the BJP and JD(S) to launch a day-and-night protest at the Vidhana Soudha on February 4, demanding Timmapur’s resignation. The issue has caused repeated disruptions in the Assembly, with heated exchanges between the ruling Congress and the Opposition.

Excise Minister RB Timmapur has denied all allegations, calling them false and politically motivated. He has questioned the lack of evidence and maintained that there is no scam. On February 5, after meeting Chief Minister Siddaramaiah, Timmapur said he would not resign and argued that resignations could not be demanded whenever the Opposition made accusations. The Chief Minister has continued to back the Excise Minister, while the Opposition has demanded either a judicial inquiry or a probe by the CBI.

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