The judicial commission of inquiry appointed by the Government to streamline
the liquor trade in the state recommended -
(1) To provide genuine liquor at reasonable price, through Government
(2) Exploitation through increased taxation and exploitation by middleman
should be stopped and consumer protection must be the guiding policy.
For achieving the above, nationalization of entire liquor trade was
In line with the suggestion the Government decided to set up a Public
Sector Corporation to procure spirit and arrange blending, bottling,
sealing and distribution of arrack and also for dealing with the sale
of IMFL. An amendment was made in the Abkari Act in 1984 to give effect
to the same.
KSBC was formed on 23.2.1984 to take over the wholesale distribution
of liquor in a phased manner and to eventually set up distilleries and
blending units to produce spirit, arrack and IMFL. Since then the distribution
of liquor has been brought under the control of the Corporation. By
a decision in 2001 the majority of the retail outlets also has been
entrusted to the Corporation. As at present the whole activity of IMFL
from procurement to distribution and sale to the consumer is controlled
by the Corporation except for loose vending of liquor by Bars / Clubs
and a small portion of the retails by Consumer Federation.
(1) To provide genuine quality liquor to consumers at reasonable prices.
(2) To make available supplies of liquor commensurate to demand.
(3) To evolve a proper system to prevent misuse, distribution of spurious
liquor through unauthorized sources and evasion of duties and taxes
(4) Consumer protection and satisfaction.