M A I N   N E W S

Demise of syndicate brings cheer to many
From A.S. Prashar
Tribune News Service

LUDHIANA, March 16 — There is jubilation among excise and police officials, liquor companies and wholesalers over what is being derisively described as the “untimely demise” of the powerful liquor syndicate here.

Formation of liquor cartels in different cities in the region to control the liquor trade is a fairly common occurrence in the region. But the one in Ludhiana has been described as the biggest in the history of liquor trade.

A grouping of 100 big and small liquor traders, it controlled the entire liquor trade in the industrial hub of Punjab, totalling more than Rs 150 crore, with an iron hand. In less than a year, it is estimated to have made a profit of a whopping Rs 35 crore. Some sources in the liquor trade put the profit at about Rs 60 crore.

Excise and police officials say the syndicate had the muscle power, manpower and the money power as well as political influence to squeeze everyone consumers, liquor companies, wholesalers and, of course, the government.

The cartel was somehow able to create the impression that it had the backing of certain top politicians of Punjab and up to 35 per cent of the daily profits were being delivered to the powers that be at Chandigarh every night. This made it all-powerful in Ludhiana.

It jacked up the prices of all popular brands of liquor according to its whims and fancies, blackmailed liquor companies of the country into giving hefty discounts and brought liquor wholesalers to their knees whenever they showed signs of rebellion.

When artificially jacked up prices in Ludhiana led to smuggling of liquor from surrounding areas, it moved in quickly to nip the evil in the bud with the aid of the authorities.

The district administration and the police seemed to be at the back and call of the syndicate. It utilised the local police and officials of the Excise Department to establish nakas on all major roads leading into Ludhiana to check “liquor smuggling” from outside the city. Invariably, these nakas were supervised by hirelings of the syndicate.

The syndicate came into being last year when a high official of the Excise Department allegedly threw all norms to the winds and allotted liquor vends at prime locations to the cartel, despite vociferous protests from other contractors at the annual excise auction. When the official refused to take note of the protests, the contractors staged an angry walkout.

The syndicate did its best to preserve itself at the annual excise auction held on Tuesday. A newly appointed minister from Ludhiana presided over a series of meetings of the cartel to decide its strategy. But all its planning came to a naught when the government framed a new bidding policy designed to encourage competition by attracting as many small contractors as possible.

Efforts by the syndicate to undermine Tuesday’s auction continued till the last minute. Liquor contractors were taken on a pilgrimage to Vaishno Devi and the Golden Temple where they vowed to sink and swim together at the excise auction.

Attempts were made to convince the Chief Minister, Mr Parkash Singh Badal, that cartels alone could ensure a good return to the government. But the Excise Minister, Mr Adesh Partap Singh Kairon, camped at Ludhiana for two days to make sure that the syndicate was smashed and contracts allotted to bidders in accordance with their capacity.