Goodwill' cash used as bait to hijack wine shops

Hyderabad: The liquor syndicate in the state has started hijacking wine shops by putting ‘goodwill package’ as bait. The syndicate has grabbed over 1,000 shops in the past two months by paying hefty pecuniary incentives to the original licence holders.

The syndicate missed out on permits when the state issued liquor shop licences on October 1, by drawing lots as multiple applications had come in for the most-sought after areas where sales are high.

The money paid under the goodwill package depends on the sales volume. Generally, it starts from Rs 50 lakh and may stretch up to Rs 1 crore.

The excise department received many complaints from Nalgonda, Ranga Reddy and Khammam districts over liquor shops changing hands against the norms. Some of the complaints were related to overpricing by the liquor syndicate.

The enforcement wing of the excise department has brought to the notice of the government that unless this trend is not curbed, it would be difficult to check MRP violations. The ring has effected  a hike of '5 per quarter bottle against the MRP. Earlier, they were overcharging tipplers by charging '2 extra per quarter bottle against the MRP.

The enforcement wing pointed out that the syndicate was charging extra money to make up for the funds they spent under the goodwill package and the alleged hostile takeover.

The AP liquor syndicate, which lost out on wine shops  in the state, has taken  over liquor shops located in the TS border districts under the goodwill package.
In Suryapet, 80 per cent of liquor shop owners handed over their shops to the syndicate after receiving the goodwill package.

Liquor shops in Jan Pahad in Suryapet district have been taken  over by an AP dealer for '1 crore, and officials are investigating the matter. Again, another shop in Munagala mandal in Nalgonda district was sold for '66 lakh.

Nearly 90 per cent of liquor shops in the Agency Areas, which are supposed to be run by tribals, have been hijacked by the syndicate, which offered '5 lakh to the original licence holder. They are also setting up illegal secondry goods shops in interior areas to recover their expenses. 

R.V.Chandravadan, excise commissioner, said, “The government has taken a serious note of these complaints and has ordered an inquiry. The licence of such shops will be cancelled if they are found to have changed hands. We are awaiting the report.” 

However, the enquiry team is finding it difficult to prove that the shops have changed hands as the licence continues to be in the name of the original licence 
holder.