ADILABAD: Operating like a clandestine business consortium, groups of seven to nine individuals in Kagaznagar are signing pacts to form cartels for liquor shop auctions.
If one member wins the bid, the others are guaranteed a hefty return; if all fail, their investment is refunded — a win-win arrangement that has officials worried about a lack of genuine competition.
According to sources, several businessmen in Kagaznagar have formed syndicate groups, each with seven to nine members. The members sign agreements stating that if any one of them secures a liquor shop, he will pay `6 lakh each to the remaining members and sponsor foreign trips. If none of them wins a shop, the deposited amount must be refunded by December as per the agreement.
Copies of these agreements have gone viral on social media in Kagaznagar town of the Komaram Bheem Asifabad district.
One such group, led by a person identified as R Kiran, has seven members. As per their pact, if a member wins a liquor tender, he must pay `6 lakh each to the other six between March 1 and 10, 2026. The shop owner will earn Rs 2 lakh per month for two years — totalling Rs 48 lakh. Members who do not get a shop within three months will be treated to a Goa trip. The TDS amount will be shared equally between the shop owner and Kiran, and the winners will also be offered a three-day Dubai trip.
G Srinivas, who leads another group, is reportedly offering Rs 3 lakh to anyone applying for a liquor shop licence. If the applicant wins, Srinivas will hold a 70% partnership without any investment, while the remaining 30% and all expenses will be borne by the applicant. If the applicant fails to get a shop, he must return the money within three months or before December 15, 2025. The agreement also mentions that if the licence is renewed after two years, the same terms will apply — along with a three-day trip to Malaysia.
A third group, led by K Satish, has nine members. Under their deal, whoever secures a shop must pay `6 lakh each to the others and deposit Rs 1.5 lakh every month for two years into their accounts before the 5th of each month.
Such cartel-like practices are not new in Kagaznagar’s liquor business. Last year too, similar groups managed to secure several licences.
Komaram Bheem Asifabad district has 32 liquor outlets, while the erstwhile Adilabad district has 192. The Excise department began accepting applications on September 26, and the deadline for submissions is October 18.
Officials said the response so far has been slow and expect most bids to come in the final week. Last year, bidders showed greater enthusiasm as the elections promised higher profits.
Police have taken note of the scheme and are collecting details of the groups. Sources said Kagaznagar police officials called the group leaders to the police station on Sunday after the social media posts went viral and warned them against such activities.
