Rs 500 Charged for e-KYC: Fair Price Shop Licence Cancelled
A Bengaluru fair price shop's licence was cancelled after it illegally charged Rs 500 for e-KYC. Minister Rizwan Arshad warns of strict action.

In a major crackdown on irregularities in the public distribution system, the authorities in Bengaluru have cancelled the licence of a fair price shop following allegations of illegal money collection. The shop, identified as Fair Price Shop No. BLS-272 located at Chandrappanagara RCHS in the Bengaluru South Zone, was found to have charged a ration card holder Rs 500 to perform a mandatory e-KYC process.
The e-KYC Scam Uncovered
The investigation began after a complaint was lodged regarding a transaction involving a citizen named Basavarajaswamy. On October 2, the secretary of the aforementioned fair price shop allegedly collected a payment of Rs 500 via PhonePe from the individual, claiming it was a fee for completing his e-KYC. Upon receiving the complaint, officials from the Food and Civil Supplies Department launched an immediate inspection to verify the claims.
The inspection confirmed the illegal transaction, revealing that the shop was treating a free government service as a paid commodity.
Multiple Violations Found During Inspection
The departmental probe did not stop at the illegal collection of money. The officials discovered a litany of other serious violations that suggested a complete disregard for the rules governing essential commodity distribution. The following discrepancies were noted during the site visit:
- Lack of Transparency: The shop failed to display a mandatory price list and stock board.
- Poor Record Keeping: The required inspection book was not being maintained.
- Hygiene Issues: The premises were found to be poorly maintained and lacked basic cleanliness.
- Improper Storage: Approximately 3.75 quintals of ragi stock were stored in an improper manner, risking spoilage or theft.
- Regulatory Non-compliance: Necessary rules, including the proper use of the shop's official seal, were ignored.
Immediate Suspension of Licence
Despite being issued a show-cause notice regarding the illegal money collection and various rule violations, the fair price shop failed to provide a satisfactory written explanation. Consequently, acting under the Karnataka Essential Commodities Public Distribution System (Control) Order, 2016, the department has issued an order to suspend the shop's licence with immediate effect.
Minister Issues Stern Warning
The incident has drawn sharp criticism from the state government. Rizwan Arshad, the Minister for Food, Civil Supplies and Consumer Affairs, expressed deep concern over the trend of shop owners exploiting ration card holders for e-KYC services.
"If such complaints are received, the licence of such shops will be cancelled immediately and legal action will be taken," the Minister warned, signaling a zero-tolerance policy toward any shop owner attempting to profiteer from government-mandated procedures.