Bengaluru, Feb 18 (IANS): The Karnataka BJP claimed on Tuesday that the Congress-led government in the state was "heading towards an excise scam" on the lines of the Aam Aadmi Party (AAP) in New Delhi.

Leader of the Opposition in Karnataka Assembly R. Ashoka, said the Congress-led Karnataka government is attempting to "loot" the state through yet another "fraudulent scheme by illegally auctioning non-existent liquor shops".

Sources stated that the Congress-led government is all set to auction non-functioning liquor shop licences illegally only to increase the revenues. The process has reached the final stage and the government has decided to go for an open auction.

As per rule 12 of the Excise Department, the quota of licenses is fixed based on the population in both rural and urban areas.

"In 2009, 463 licenses were not renewed, and taken over by the Mysuru Sales International Limited (MSIL), a government undertaking. This also included 125 non-functional liquor shops. It is alleged that in collusion with authorities, the proposal has been made to the government for renewal of these licenses," Ashoka claimed.

The government is positive about the proposal as it is shown that the new public auctioning system would generate Rs 2,000 crore in revenue. The wine merchants' federation is preparing to approach the court, in case, the government goes ahead with its plans.

"The authorities have also "violated" the High Court order to cancel 385 wine shops granted under the CL-2 quota. Though an order was issued in 2018, the officers are not bothering much," sources said.

There are 13,519 liquor shops in the state, including 4,002 wine shops, 302 clubs, 95-star hotels, 2,994 hotels and lodges, 71 military canteens, 3,644 bars and restaurants, and 87 wine boutiques.