Karnataka Excise Department to Auction 579 Inactive Bar and Liquor Shop Licenses

Karnataka Excise Department will auction 579 inactive bar and liquor shop licenses, including CL-2, CL-9, and CL-11 categories, aiming to boost revenue, ensure compliance, and create opportunities for new entrepreneurs in the state.

Bengaluru: The Karnataka government is set to deliver a major jolt to liquor shop owners who have failed to open their outlets or renew their licenses for over a year. The State Excise Department has decided to auction nearly 579 liquor licenses and has already issued a notification in this regard.

This move aims to crack down on license holders who kept their shops closed for years, effectively blocking opportunities for others, while creating new avenues for entrepreneurs.

Which Licenses Will Be Auctioned?

The Excise Department will auction a total of 579 licenses belonging to the following categories:

• CL-2 (MRP Shops): Liquor shops selling at MRP rates.
• CL-9 (Bars and Restaurants): Licenses for bar and restaurant operations.
• CL-11 (Clubs): Licenses issued to clubs for serving liquor.

Licenses that remain unrenewed for more than a year, or where the licensee has passed away, are also being included in the auction.

Excise Department Considering E-Auction

Excise Minister RB Thimmapur has discussed the decision with Chief Minister Siddaramaiah. To ensure transparency, the department is considering distributing the licenses through an e-auction system.

Notably, the government has stopped issuing new CL-2 licenses since 1992, making this auction a rare and significant development as a large batch of licenses becomes available after decades.

New Rules for License Cancellation

The government has also introduced strict new measures for license holders:

Shops Closed for Six Months: If a shop remains closed continuously for six months, its license will be cancelled and auctioned.

Unrenewed Licenses: Licenses that remain unrenewed for over a year will be identified and auctioned every five years.

The Excise Department has issued a notification and given 10 days for objections to be filed by stakeholders.

Government Expects ₹2,000 Crore Revenue

Speaking to the media, Excise Minister RB Thimmapur said:

“It has been decided to re-auction licenses in cases where they were obtained but shops were not opened. A draft is ready, and discussions are ongoing with the CM on whether the auction should follow a general process or if reservations should be included. We expect a revenue of ₹2,000 crore. We are not issuing new licenses, only re-auctioning the remaining ones.”