Bengaluru, June 26 -- Karnataka Chief Minister DK Shivakumar on Friday issued a stern warning to Excise Department officials, saying the government would not tolerate any action that tarnishes its image, hours after the Directorate of Enforcement (ED) claimed to have unearthed an alleged benami liquor licence racket involving officials, middlemen and associates within the department.

Chairing a review meeting of the Excise Department at Vidhana Soudha, Shivakumar cautioned that legal changes could be introduced to facilitate the transfer of errant Excise officials to other departments if necessary.

"If you function with dignity, the government's dignity is enhanced. If you do anything that damages the government's dignity, we will not sit...