The excise department is in for fresh trouble with a majority of licensed retail outlets failing to produce the mandatory bank guarantee before the deadline, and therefore not being allowed to sell liquor.
The excise department’s revenues have already been hit by the reduction in licence fee and 700 shops remaining unallotted.
The last date for submission of bank guarantees was July 10 for retailers in the twin cities, but it is July 15 for the rest of the state. A senior excise officer told this newspaper that the AP Beverages Corporation Limited has already stopped supplies to several retailers in the city and they will do the same in other parts of the state unless the date is extended.
Banks have become extremely cautious about furnishing guarantees following the ACB’s drive against dealers. The banks have not only stopped mutual guarantee facility for the retailers but are also insisting on 150 per cent of the guarantee as surety. “The banks are also taking time to process the applications in view of the thorough verification required,” a retailer said.
Though respective excise superintendents are empowered to extend the last date for submitting the bank guarantees, they refuse to do so fearing the ACB. The investigating agency has charged excise superintendents of extending the deadline for guarantees after receiving kickbacks.
Senior excise officials are said to be issuing oral instructions to superintendents to extend the last date.