Lottery system puts a stop to syndicate

Though the opposition staged protests slamming the government’s lottery system to allot 231 retail liquor shops in Warangal, the new system has managed to change equations with many shops run by syndicate leaders and politicians failing to bag licenses when lots were drawn on Tuesday.

“I submitted six tender applications at the rate of Rs.25,000 each for my old shop, but failed to bag the one year retail liquor licence,” said a politician cum liquor lobby member, who expressed disappointment with the lottery system.

Despite submitting te-nder applications through benami names, sources said the lottery system also affected the syndicate system to some extent as outsiders managed to obtain license through the lottery system.

Insiders point out that this was not possible in the earlier system, whe-re shop licences were awa-rded to the highest bidder.

However, the new system also cost Rs.67.51 crores in the form of revenue loss to the Warangal excise department as it earned only Rs.89.23 crores for the excise year 2012-13 as licence fee from 231 retail liquor shops.

In contrast, the district excise wing earned Rs.313.49 crores during 2010-12 excise years, which comes to Rs.156.74 crores for each of the year.

The break-up of the exc-ise department’s earning for 2012-13 excise year sho-ws its major share comes from Rs.34 lakh slab rate fixed on 97 retail liquor shops (Rs.32.98 crores).

It is followed by Rs.32.5 lakh slab rate fixed on 86 retail liquor shops (Rs.27.95 crores), the Rs.64 lakh slab rate on 37 shops (Rs.23.68 crores) and Rs.42 lakh slab follow it on 11 shops (Rs.4.62 crores).

Besides the one-year license fee of Rs.89.23 crores, the excise department also earned an additional Rs.7.59 crores through sale of 3,039 tender applications for the 231 retail liquor shops at the rate of Rs.25,000 each, making its gross collection as Rs.96.82 crores.

Meanwhile, opposition leaders like CPI district secretary T. Srinivas Rao demanded that Income Tax authorities go into the tax payment history of all the 3,039 liquor tender applicants in Warangal.

“The tax background of all the tender applicants should be investigated to see how many of them were filing regular returns to the Income Tax department,” he said.