Rs20 crore loss a day makes Karnataka govt open wine shops early

An estimated loss of Rs20 crore a day to the state exchequer prompted the government to confine the ban on sale of liquor to just 24 hours, even though the prohibitory orders would be in force for more than 48 hours.

The state would be under prohibitory orders under Section 144 of the Criminal Procedure Code from Thursday 6 am to Saturday midnight. Bars and wine shops, however, would be closed only for 24 hours starting Thursday 6 am.

The government announced the closure in the light of the expected Allahabad high court’s verdict on the Babri Masjid-Ram Janmabhoomi title dispute.

An estimated loss of Rs20 crore a day to the state exchequer is believed to have resulted in the relaxation extended to liquor outlets. Shutting down the bars and pubs in Bangalore alone would result in a revenue shortfall of Rs13 crore.

The loss of revenue incurred due to the closure of bars and pubs would be unaffordable for the state, already under a financial crunch.

Besides affecting the state exchequer, an extended ban on the functioning of bars and pubs would have a bearing on several lakh of people involved – directly or indirectly – in the liquor business.

“In Bangalore city alone, there are 2,300 bars and wine shops. If we close them for a day, each one of them will suffer a loss of Rs5,000,” said Honnagiri Gowda, chairman of the Bangalore Wine Merchants Association.

All educational institutions would be closed for two days. The government has also banned victory parades and protest marches.

Spreading rumours and disseminating provocative messages would invite punitive action, the government has warned.