State caught in toddy tangle

State Excise and Prohibition Minister Ganesh Naik may be at the doors of the Bombay High Court (HC) for the same reasons as Anees Ahmed, minister for animal husbandry, dairy development and fisheries. The state government has been dragged to the HC for renewing a contract without issuing tenders for the year, this time in the case of toddy shop owners.

Three toddy traders from Solapur, the state’s largest toddy producer, have moved the HC challenging a letter issued at the instance of Naik on August 28 informing the collectors in the state to continue with existing license holders till further orders. The payment of an additional premium of three per cent over the auction price of 2005-06 was also suggested.

Petitioners Baburao Kontam, Mohan Valsa and Laxmikant Udgiri have alleged that by renewing the licenses without tenders, Naik flouted the Maharashtra Toddy Shops Order of 1968, which was amended in 2001.

Calling the decision ‘incorrect and illegal’ the petition states that the government, as a result of this order, has incurred an annual loss of Rs25 crore. The decision, according to the petition, ignores the views of the excise and finance departments.

The petitioners alleged that Naik catered to the request of vendors from Mumbai who approached him for an extension of their licenses. Last week, the court had given the state their last chance to file an affidavit in reply. They will hear the case further on October 3.