After Delhi, West Bengal has thrown up its own iteration of a liquor scam. The state’s liquor policy was altered in 2017, allegedly at the behest of All India Trinamool Congress (AITC) super-boss and then Chief Minister Mamata Banerjee’s nephew Abhishek Banerjee, enabling the state to monopolise liquor distribution.
The new policy was designed to twist the arms of erstwhile private wholesalers into paying levies to line Abhishek’s pockets to the tune of thousands of crores.
According to a confidential report drawn up by the excise department, which The Statesman has seen, all this carving up of state revenue was carried out in the name of “averting cartelisation, transparency, equitable access of liquor to all parts of the state and promotion of consumer choice.”
The Statesman has also learned that the report has already been tabled with West Bengal Chief Secretary Manoj Kumar Agarwal, and Chief Minister Suvendu Adhikari too has been briefed on the matter.
Amit Malviya, Co-incharge of BJP West Bengal, told The Statesman “those who looted West Bengal” would have to “answer for their actions”.
“The details emerging from the West Bengal liquor scam point to a deeply entrenched culture of corruption under the Trinamool Congress. The allegations suggest a syndicate that operated with political patronage, with Abhishek Banerjee at its centre and all of it unfolding under Mamata Banerjee’s watch,” Malviya said.
“The IFB complaint was not a private grievance, it was a matter reported to the stock exchange and placed in the public domain. The truth can no longer be buried.
Those who looted the people of West Bengal and extorted businesses must be held accountable. The law will take its course, and every person involved, regardless of position or influence, will have to answer for their actions.”
How TMC Govt Monopolised Liquor Business
The confidential report alluded to above charts out the modus operandi of the entire operation.
In 2017, a special body—West Bengal State Beverages Corporation Ltd. (WBSBCL)—was created to replace private wholesalers, also called ‘Trades’, who owned the distributorship of foreign liquor and beer. These ‘Trades’ used to hold licenses under the Bengal Excise Act, 1909.
According to the report, through WBSBCL the Mamata Banerjee-led TMC government took up the liquor business. Earlier, the liquor business in West Bengal was driven by 55 ‘Trades’ operating independently and competitively.
The manufacturers, under this system, could choose their trading partners—one of the 55 licenced Trades—depending on their business strengths (or weaknesses thereof), while retailers too had the freedom to opt from multiple supply points. In all, the system prior to 2017 was one of “fair trade practices, healthy competition and timely supply of liquor at the ultimate consumption points, i.e. retail licensed outlets.”
Things changed with the advent of WBSBCL. The new system introduced a new set of distributors who extorted the bottlers. This system was allegedly put in place under the stewardship of then Excise Commissioner Uma Shankar S, allegedly operating at the behest of now embattled TMC leader Abhishek Banerjee. The system, the report documents, was run by a close nexus of several senior officers at the Excise Directorate.
“… the concept of decentralised business, fair trade practices, healthy competition and multi-supply points gave way a Monopolistic Business Model,” the report observes.
How Collection Racket Was Run From 9, Camac Street
The report alleges malfeasance, going so much so to state that the “whole policy of introduction of such Distributors was designed “in order to siphon out money for the AITC in the name of garnering revenue for the Government Exchequer.”
Allegedly, the distributors used to remit a part of their profit, which ought to have gone into government coffers, to the TMC.A charge of Rs. 4 per crate as rental for their godown and Rs. 3 per crate as transport cost was charged. The bottler and the Foreign Liquor Manufacturers were forced to pay this exorbitant rental and transport charges.
This tribute, the report says, made its way to 9, Camac Street, known also as Shantiniketan, the residence of Abhishek Banerjee.
How Bottlers Were Coerced: Fall In Line Or Shut Shop
Sources also told The Statesman that bottlers, who protested, were coerced to fall in line and join this system of loot. One such example is IFB Agro Industries Ltd.
IFB Agro Industries Ltd shot a stinging letter to West Bengal’s Excise Commissioner as recently as May 18, demanding to immediately stop the extortion and embezzlement under the new liquor distribution arrangement, noting that since a new government had come to power and “we are of the view that the new Government will not allow you and other Excise Officials to commit such activities.”
The letter, seen by The Statesman, which was also marked to chief secretary Agarwal, reiterated that the company had communicated with the department on this issue on several occasions—letters dated 13.01.2025; 04.02.2025; 08.05.2025 and 08.07.2025 along with various other communications issued from time to time—in order to raise concerns regarding “illegal interference by certain Excise Officials arising out of our refusal to comply with their unlawful demands.”
“We are sure that, you must have conducted the required investigation on the issues raised. We would request you to kindly share the facts found and the action taken against the officers, indulge in such activities.”
“Additionally, we would like to bring to your kind notice that, in light of the issues raised in our earlier communications and as already communicated, the arrangement has been made solely based on your instructions, and whereunder we have been compelled to make steps to inform the new Government of the activities undertaken by you in this regard,” the letter said tersely.
IFB Agro Industries Ltd remained unavailable for comment by the time of going into print despite calls and text messages from The Statesman.
Reportedly, to coerce the company, its bottling plant was forcibly kept closed by TMC’s lynchpin of the ‘Diamond Harbour Model’, Jahangir Khan.
Bottlers, sources said, were extorted even for country liquor at the rate of Rs 3 per bottle.
Who Were The Architects Of New Policy
The policy document that introduced WBSBCL was framed by five officers:
- Goutam Ghosh, (retired promoted IAS), the then Special Commissioner (Revenue) & GM, Ops, WBSBCL. (who was on extension in Finance Department till a few days ago)
- Shantanu Acharya, WBRS, Sr. Joint Commissioner of Revenue and the then Manager (Ops), WBSBCL
- Sanchayan Ganguly, WBRS, Deputy Commissioner of Revenue & the then Manager (Systems), WBSBCL.
- Rajarshi Chakraborty, Addl. Commissioner of Revenue & GM Systems, WBSBCL
- Kunas Biswas, Spl. Commissioner (HR)
They were the ones to sign off on the new policy that recommended the creation of WBSBCL.
Glaring overreach causing harm to public exchequer is evidenced by the fact that the concept of collection of total duty at one-time, i.e. at source (Manufactory/ Bottling Plant), which is always considered the safest revenue collection model, was discontinued. Rather, a two-tier system was introduced, one involving collection of excise duty at the end of Manufactory/ Bottling Plant and the other involving collection of the remaining additional excise duty at the distributor’s end.
The confidential report with the state government notes that this two-tier method resulted in “delayed realisation of excise revenue; and, abrupt disruption in the distribution network of WBSBCL as the private distributors often failed to maintain the adequate additional excise duty in their P/L Accounts.”
Who Says What
Abhishek Banerjee could not be reached for a comment despite several phone calls and text messages.
The Statesman got in touch with Kaushik Bhattacharya, Excise Commissioner, West Bengal, and asked about the sweeping liquor policy changes implemented by the WBSBCL in 2017 that allegedly directly benefited the TMC and its leaders financially.
Bhattacharya told The Statesman he was not authorised to speak on the matter. “I will not comment on this issue at all. There are standing instructions that only authorised spokespersons can speak to the media. I am not an authorised spokesperson,” he said.
Uma Shankar S, the former Excise Commissioner, who served during 2021-22 and currently posted in the Finance Department, refused to comment on the matter. “It was the government’s policy. It was not my policy. I should not speak on it. In fact, I am not authorised to speak to the media,” he said.
Requesting anonymity, one of the signatories to the 21-page policy document said that the committee had been constituted following instructions from the Finance Department.
“As far as I can recall, the Finance Department had directed that a committee be formed. I was possibly a member of that committee. The committee examined the matter and submitted its recommendations to the State Government. The final decision, however, rested with the Government,” he told The Statesman.
Goutam Ghosh, Kunal Biswas, Rajarshi Chakraborty and Sanchayan Ganguly did not take calls from The Statesman, neither did they respond to messages. Santanu Acharya could not be contacted.
Bottlers Up In Arms: ‘Return Our Money’
Highly placed sources have told The Statesman that liquor bottlers are getting together to raise this matter with the state government. “We shall be demanding our money, the money that was illegally extorted from us by the nexus of Abhishek Banerjee and corrupt excise officials, back. We should be compensated for our losses,” a major liquor bottler said. A major agitation is planned around this demand in the coming couple of days.