Karnataka Chief Minister D K Shivakumar on Thursday issued a stern warning to excise department officials, cautioning them against corruption. The crackdown came a day after the Enforcement Directorate (ED) revealed that it had uncovered widespread corruption—described as an organised syndicate—within the department, alleging that most officials owned benami liquor licences.
ED findings expose syndicate
According to the ED, the investigation found that excise officials were deeply involved in an organised network, with many holding benami (proxy) liquor licences. The agency said this syndicate had been operating for years, siphoning off significant revenue from the state exchequer. The ED's statement highlighted that the corruption was systematic, involving multiple layers of the department.
CM's response
Speaking to reporters in Bengaluru, Shivakumar said, "I have warned the excise department officials to be cautious. Corruption will not be tolerated at any level. The government is committed to clean administration." He added that strict action would be taken against those found guilty, and a high-level inquiry would be ordered to clean up the department.
Impact on Karnataka's excise revenue
The excise department is a major revenue source for Karnataka, contributing thousands of crores annually. The ED's findings raise concerns about potential losses due to the syndicate's activities. The state government has already initiated steps to digitise licensing and monitoring processes to reduce human intervention and curb corruption.
Political reactions
Opposition parties in Karnataka have seized on the ED's report, demanding a thorough investigation and the resignation of the excise minister. The ruling Congress party, however, has defended the government's actions, pointing to Shivakumar's swift warning as evidence of its commitment to transparency.



