Kerala Finance Minister KM Mani
The Kerala government's vigilance department has begun a preliminary inquiry against Finance Minister K M Mani, over allegations that he took a bribe of Rs. 1 crore as part of a deal to renew the licenses of 418 bars that were closed.
Mr Mani is a leader of Kerala Congress (M), a key ally in the Congress-led ruling coalition.
Biju Ramesh, chief of the Kerala Hotels and Bar Association, had alleged in a TV show on a regional channel recently that he was asked for a bribe of Rs. 5 crore in return for renewal of licenses of the bars. Mr Ramesh further alleged that he paid part of the sum - Rs. 1 crore - to Mr Mani.
Kerala Chief Minister Oommen Chandy had earlier strongly denied the allegations, saying, "Allegations against KM Mani are politically motivated and far from the reality".
The government and bar owners across the state are locked in a legal battle over the new "no-liquor" policy that aims to achieve complete prohibition in the state in a phased manner. The Chief Minister had, in August, announced that over 700 bars across the state will have to shut down, adding that only five-star hotels would be allowed to keep serving liquor.
The Kerala High Court had upheld that order on October 30, asking the bars to shut down immediately. But it allowed bars in 62 heritage, four-star and five-star hotels to serve liquor.
In an interim relief for bar owners, a division bench of the court on Friday, October 31, allowed 312 bars to remain open for a month but ordered status quo to be maintained for the 418 bars.