Karnataka Excise Department to Auction 600 Liquor Shop Licences to Curb Lobby Influence

Time of India

30-04-2025

Karnataka Excise Department
liquor shop licences
Karnataka will e-auction nearly 600 long-suspended liquor licences, aiming to generate about Rs 1,600 crore
Excise official
Licences suspended or not renewed since 1979 to get new lease of lifeIn a significant move to regulate the liquor trade and curb the influence of powerful lobbies, thehas decided to redistribute nearly 600including those of CL-2 (retail shops), CL-9 (bars and restaurants), and pending MSIL outlets through an e-auction for the first time.The department aims to revive licences that have been suspended or left unrenewed for years, some dating back as far as 1979. By implementing this new system, the government expects to generate around Rs.1,600 crore in revenue, according to officials.Currently, 136 CL-2 licences and 105 CL-9 licences have not been renewed due to a range of complications. These include unresolved family disputes among licence holders, unclear ownership transfers, non-payment of renewal fees, and ineligibility due to heirs working in government positions or other profit-making roles. Additionally, 271 MSIL outlets that were approved by the government are yet to begin operations.'Under the present rules, licence holders must renew their permits annually. While about 90% comply, a significant number have failed to do so, leading to closures and loss of revenue for the department,' a senior excise official said.The state-run Mysore Sales International Ltd (MSIL) had been sanctioned to open 1,363 retail liquor outlets (CL-11C) under quotas announced in 2009 and 2016. Of these, 1,133 received the green light, but 41 are currently non-operational, and 230 still await final approval. To address this, the Excise Department has sent a proposal to the Finance Department seeking permission to relocate these suspended licences to private players via e-auction. The objective is to plug revenue leaks and introduce greater transparency in the allocation process.Chief Minister Siddaramaiah has reportedly backed the e-auction initiative. In his budget speech delivered in March, he hinted at major reforms aimed at reducing manipulation and eliminating backdoor entries in the liquor licensing process.The move is also being seen as an effort to dismantle the long-standing influence of the liquor lobby, which has historically played a dominant role in licence allocation. Several political figures and their associates are known to have used their clout to secure licences. Wealthy entities already running multiple outlets have often managed to acquire even more. There are also allegations that some senior excise officials have obtained licences under benami names and are operating liquor outlets unofficially.'The e-auction method aims to bring greater transparency and accountability to the licensing process. The excise official added, 'This move is expected to not only enhance the state's revenue but also ensure a fair and competitive environment in the liquor trade.'In a separate but related development highlighting the darker side of liquor consumption, a tragic incident has come to light in Bengaluru. A 21-year-old labourer, Kartik, lost his life after accepting a reckless drinking challenge from his friends. He had reportedly bet Rs.10,000 that he could consume five full bottles of whiskey without mixing it with water.Shortly after the stunt, Kartik became violently ill and was rushed to the Mulbagal Government Hospital. Tragically, he died before receiving treatment. Just a year into his marriage, Kartik had become a father only eight days before the incident.His friends, Munivenkatreddy and Subrahmanya, are among six people named in a police complaint filed by Kartik's grieving family. The complaint accuses them of encouraging him to take the fatal risk, despite being aware of the dangers involved.