The Karnataka food department has cancelled the licence of a fair price shop in Bengaluru’s Chandrappanagar after confirming that ₹500 was collected from a ration-card holder for completing e-KYC, Food Minister Rizwan Arshad said in a statement issued on Saturday.
According to the minister, the shop falls under the Bengaluru South zone. The shop’s secretary allegedly received the payment through PhonePe on October 2 from a ration-card holder identified as Basavarajaswamy for completing the e-KYC process. The department acted after receiving a complaint and conducting an inspection of the shop, where the allegation was confirmed, the statement said.
The department’s inspection also found several other compliance violations. The shop did not display a rate list, a stock board or samples of the foodgrains supplied through the public distribution system. Officials also found that an inspection book had not been maintained and that cleanliness had not been properly maintained on the premises.
The inspection further found that around 3.75 quintals of ragi stock had not been stored appropriately. The department also identified non-compliance involving the shop’s seal and other required procedures. The licence holder was given an opportunity to provide an explanation, but the department said the response was not satisfactory.
The cancellation places the incident within the wider administrative framework governing fair price shops, which serve as the access point for subsidised foodgrains and related ration-card services. The department’s inspection covered both the alleged payment for e-KYC and the shop’s routine operating standards, including documentation, stock handling, public disclosures and cleanliness.
The minister said ration shop operators must not collect money from beneficiaries for completing e-KYC. He asked ration-card holders to report such demands to the food department and said action would be taken against operators found collecting money for the service.
The department’s statement did not specify how ration-card holders previously linked to the shop would be served after the licence cancellation, or whether any separate arrangements had been announced for the distribution of their foodgrains. It also did not state whether further action would be taken against any other individuals connected with the shop.
The case highlights the importance of complaint-based inspections in monitoring last-mile delivery through the public distribution system. In this instance, the department said the complaint led to a physical inspection that established both the payment for e-KYC and multiple operational deficiencies. The food department’s next steps, including arrangements for affected beneficiaries and any further proceedings, were not detailed in the statement.
