Karnataka’s liquor home delivery plan in cold storage

BENGALURU: Disappointment is in store for those expecting home delivery of liquor through a government initiative of taking online orders via Mysore Sales International Limited (MSIL).
The state government is not doing it, for now, considering hurdles in the implementation of such a plan.
For excise officials, it is a shut case until a new policy is formulated to address legal issues as well as concerns raised about such a sale.

The proposal to allow online sale of alcohol emerged in September, but it received a negative response from retail stores, who feared losses in business if online sale of alcohol was allowed. The government had planned to levy some per cent of excise duty for online liquor sale, which would have brought more revenue.

An official from the state excise department said on condition of anonymity, “Allowing online sale of liquor would help us get more revenue. But the retailers opposed it, fearing losses. This is primarily why the state government decided not to pursue it. Otherwise, we would have got an additional Rs1,500 crore revenue annually.’’   There is no provision for online sale in the existing excise laws which govern licensing and distribution of liquor. In order to implement it, a new policy has to be brought in.
Excise Commissioner V. Yashavanth said, “For the time being, it has been stopped. Bringing online sale has many issues, including legal.”

Karnataka Federation of Wine Merchants Association president Govindraj Hegde said they have been opposing online sale from the beginning. A meeting was convened in October by the state excise department in which federation members were invited.

“We are filing objections to the online sale committee which has been constituted to look after this. If the government goes ahead, we will go to court,’’ Hegde said, adding that under the excise act, sale and use of liquor for people aged under 18 years is prohibited. “What is the guarantee that online consumer is above 18 years of age?” he asked. Another issue is an illegal online sale by private sellers. “If we allowed online sale, many private players would start online sale illegally and it would be difficult for us to check them,’’ said another excise official.