Latest news with #MysoreSalesInternationalLtd
Time of India
10 hours ago
- Business
- Time of India
MSIL to revamp chit fund biz through app, eyes Rs 10K-cr mkt
Bengaluru: Karnataka govt is revamping Mysore Sales International Ltd's (MSIL) chit fund operations aiming to generate up to Rs 10,000 crore annually in a move that seeks to formalise and scale up the state's presence in the informal savings market. Industries minister MB Patil held a meeting with MSIL officials late Tuesday evening to chart a new course for the state-owned entity. "The present chit fund business is roughly Rs 500 crore annually, while Kerala has an annual turnover of Rs 50,000 crore to Rs 70,000 crore. Karnataka's aim is to increase the business to Rs 10,000 crore," said an industries department official present at the meeting. To drive this transformation, the state will launch a mobile app and build a dedicated agent network to bring formal structure and transparency to the chit fund operations. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru MSIL managing director Manoj Kumar said the initiative will make chit funds safe, secure and accessible to all sections of society. "While MSIL was in the chit fund business for over two decades, it is only known to be a supplier of liquor in the state. Now, we're revamping our brand and opening MSIL chit funds, which will have a corpus of anywhere between Rs 1 lakh and Rs 1 crore," he said. Kumar said the mobile app — already tested — is ready for rollout. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo It will allow members to manage subscriptions, track payments and handle accounts. "MSIL managed as much as Rs 500 crore through books till recently. Now, with the mobile application being developed, we expect it to be seamless and secure through digital transactions," he added. To extend its reach, MSIL will recruit agents at district and taluk levels. "We are considering enrolling retired bankers at the district levels to act as the foramen of the chit fund business and deploy agents with the incentive, apart from a 5% commission," Kumar said. Among the products planned is flagship Micro Chits, aimed at serving financially excluded sections of society. "The revamp is to ensure there is financial inclusion of those who cannot approach banks for credit or savings. In an unstable market, the Karnataka govt is leveraging its name for the chit funds to be floated by MSIL," said Patil. The state hopes that by bringing legitimacy and digital infrastructure to the chit fund space, MSIL can become a trusted financial platform — moving far beyond its liquor-retailing legacy.
Time of India
30-04-2025
- Business
- Time of India
Karnataka Excise Department to Auction 600 Liquor Shop Licences to Curb Lobby Influence
Karnataka Excise Department liquor shop licences Karnataka will e-auction nearly 600 long-suspended liquor licences, aiming to generate about Rs 1,600 crore Excise official Licences suspended or not renewed since 1979 to get new lease of lifeIn a significant move to regulate the liquor trade and curb the influence of powerful lobbies, thehas decided to redistribute nearly 600including those of CL-2 (retail shops), CL-9 (bars and restaurants), and pending MSIL outlets through an e-auction for the first department aims to revive licences that have been suspended or left unrenewed for years, some dating back as far as 1979. By implementing this new system, the government expects to generate around Rs.1,600 crore in revenue, according to 136 CL-2 licences and 105 CL-9 licences have not been renewed due to a range of complications. These include unresolved family disputes among licence holders, unclear ownership transfers, non-payment of renewal fees, and ineligibility due to heirs working in government positions or other profit-making roles. Additionally, 271 MSIL outlets that were approved by the government are yet to begin operations.'Under the present rules, licence holders must renew their permits annually. While about 90% comply, a significant number have failed to do so, leading to closures and loss of revenue for the department,' a senior excise official state-run Mysore Sales International Ltd (MSIL) had been sanctioned to open 1,363 retail liquor outlets (CL-11C) under quotas announced in 2009 and 2016. Of these, 1,133 received the green light, but 41 are currently non-operational, and 230 still await final approval. To address this, the Excise Department has sent a proposal to the Finance Department seeking permission to relocate these suspended licences to private players via e-auction. The objective is to plug revenue leaks and introduce greater transparency in the allocation Minister Siddaramaiah has reportedly backed the e-auction initiative. In his budget speech delivered in March, he hinted at major reforms aimed at reducing manipulation and eliminating backdoor entries in the liquor licensing move is also being seen as an effort to dismantle the long-standing influence of the liquor lobby, which has historically played a dominant role in licence allocation. Several political figures and their associates are known to have used their clout to secure licences. Wealthy entities already running multiple outlets have often managed to acquire even more. There are also allegations that some senior excise officials have obtained licences under benami names and are operating liquor outlets unofficially.'The e-auction method aims to bring greater transparency and accountability to the licensing process. The excise official added, 'This move is expected to not only enhance the state's revenue but also ensure a fair and competitive environment in the liquor trade.'In a separate but related development highlighting the darker side of liquor consumption, a tragic incident has come to light in Bengaluru. A 21-year-old labourer, Kartik, lost his life after accepting a reckless drinking challenge from his friends. He had reportedly bet Rs.10,000 that he could consume five full bottles of whiskey without mixing it with after the stunt, Kartik became violently ill and was rushed to the Mulbagal Government Hospital. Tragically, he died before receiving treatment. Just a year into his marriage, Kartik had become a father only eight days before the friends, Munivenkatreddy and Subrahmanya, are among six people named in a police complaint filed by Kartik's grieving family. The complaint accuses them of encouraging him to take the fatal risk, despite being aware of the dangers involved.
