ED Unearths Organised Syndicate In Karnataka Excise Department; Exposes large-scale bribery & Benami Liquor Licence Racket

Bengaluru: The Directorate of Enforcement (ED) has unearthed an organised syndicate in the Karnataka Excise Department, that handles collection of monthly bribe from all types of liquor outlets, distribution of this money to the officials, renewal of licenses and also hold some licenses in benami and lease it out to interested parties.

The entire network came to light on Thursday, when ED officials raided 14 premises across the State, while investigating into the disproportionate assets case pertaining to Belagavi Division Additional Commissioner Y D Manjunath, where the ED officials have seized ₹5.5 crore in cash and ₹7.8 crore worth of gold. The ED officials are now looking into their benami transactions, for which they have both written and digital documentations.

The syndicate comprises the officials, their associates and the middle men in the Excise Department. The group of middlemen plays a crucial role of collecting money from liquor outlets like wine shops, pubs, bars and distributing it among the officials through the associates of the officials. Besides, the middlemen keep a tab on the license renewals, aspirants for new licenses to open wine shops, pubs and bars, and get the license issued for a cost. Even that money is distributed to the officials through the network. Meanwhile, the associates of the officials get a number of new licenses under benami names and either sell it or get into partnership with those who want to open an outlet.

Manjunath is brother-in-law of Karnataka Minister Sathish Jarkiholi and the ED raided the premises of Manjunath along with his associates Jagadish Naik, K M Thammanna and their family members in Belagavi, Mysuru and Bengaluru houses and office premises where he is said to have investments. During the raid, the ED officials recovered more than 100 excise licenses in various names -- mostly in the name of friends and family members.

Besides money, gold and benami licenses, the ED officials have seized foreign currency worth over ₹ 3.3 crore, a book containing details of money distributed through syndicate to the officials, details of properties stored in pen drives and a number of bank pass books, which are being verified. The ED officials are evaluating the value of three houses in prime areas of Belagavi, Bengaluru and Mysuru owned by Manjunath and also verifying his investments in many restaurants owned by celebrities in Bengaluru.