Senior Congress legislator Priyank Kharge said that a private company, KN Resources, based in Mumbai, requested permission to export 200,000 tonnes of molasses in September 2022.
The Congress alleged on Wednesday that the Basavaraj Bommai-led Karnataka government facilitated a scam in molasses export.

Senior Congress legislator Priyank Kharge said that a private company, KN Resources, based in Mumbai, requested permission to export 200,000 tonnes of molasses in September 2022.

“Despite not having the necessary documentation, the government took a special interest and gave the M2 license in just two months,” Kharge said.

“In the state budget, the BJP government set a target of ₹39,000 crore tax from excise but is artificially creating a molasses shortage. Distillers protested that molasses should not be exported, as it would affect the government’s income, but were ignored. This company has not paid GST for 36 months but got permission to export molasses,” Kharge told the media.

No document was furnished for the arrangement of exports, and the destination was not disclosed either while seeking permission, he alleged.“One tonne of molasses costs ₹10,000, so 2 lakh tonnes will fetch about ₹200 crore. KN Resources Pvt Ltd stated it would procure 2 lakh tonnes from Karnataka, and export it through Goa, though Karnataka has its ports. Our government could have collected ₹60 crore through tax. Later, crores could have been generated from the sale of liquor,” he added.

Following this, Lancha Mukta Karnataka Nirmana Vedike, an organisation campaigning against corruption, filed a complaint with the Lokayukta against KN Resources Pvt LTD

The complaint alleged that unethical and corrupt practices are being carried out by the officials of the state excise and finance department.

“A series of letters have been written to the commissioner (excise department) requesting them to permit KN Resources to procure molasses. Despite not having the right licences and permissions, the company is given a green light, and the deal goes forward,” the complaint said.
The complaint also produced a phone recording between a contractor and an employee of KN Resources as a part of its evidence.

The audio recording indicates the involvement of chief minister Bommai and the Union finance ministry and excise ministry in Karnataka, a statement from the organisation said. HT cannot authenticate the veracity of the audio clip.

Responding to the allegation, Bommai said the government is ready to commission “any kind” of the investigation if Congress functionaries provide evidence to support their claims. He even dared the opposition party to file a complaint with the Lokayukta.
“Let them give details of the case they are trying to make out,” Bommai said.

“It is wrong to make allegations without providing details. As far as Priyank Kharge is concerned, there are allegations against him in the PSI recruitment scam. Let him complain to Lokayukta at least now in this so-called excise case,” he added.