THIRUVANANTHAPURAM: Opposition leader Ramesh Chennithala has alleged that there is Rs 200 crore scam involved in the recently declared alcohol price hike. Alleging the price hike was intended to help the distillery owners, he approached vigilance director to complain against the chief minister Pinarayi Vijayan and excise minister T P Ramakrishnan.

“The government says that the price hike is necessitated by the hike in the cost of extra neutral alcohol. But on scrutinising the government documents it could be understood that the government’s claims are wrong,” Chennithala alleged.

“Private distilleries and private companies supply 20 lakh cases of alcohol to beverages corporation. If the base price of Rs 700 is levied on each case then, distillery owners get a revenue of Rs 140 crore every month. A year’s business would amount to Rs 1,680 crores. A few firms are involved in the distribution of alcohol in Kerala. Documents show that United Spirits Limited, a giant in alcohol distribution, supplies 33 per cent of alcohol needed for beverages corporation,” Chennithala said in his letter addressed to state vigilance chief.

In Kerala, the prices of alcohol are increased by seven per cent. With this, a bottle of alcohol’s price could spike from Rs 10 to Rs 90. The new price will come into effect from February 1st. When the price of a bottle increases by Rs 40, the government receives Rs 35, alcohol distribution companies pockets Rs 4 and beverages corporation gets Rs 1.