Daijiworld Media Network – Bengaluru

Bengaluru, Sep 26: In a major move, the state excise department has decided to auction 579 liquor licences that have remained unused for over a year. A notification in this regard has already been issued.

The decision comes as several licence holders had obtained permits but failed to open liquor shops, leaving the licences blocked for years. With this auction, such owners are set to face a setback while new entrepreneurs are expected to get opportunities.

The 579 licences identified for auction fall under different categories. These include CL-2 (MRP shops), which are outlets selling liquor at MRP; CL-9 (bars and restaurants); and CL-11 (club licences).

The auction also includes licences left unused after the death of the holder or those not renewed for over a year.

Excise minister R B Thimmapur confirmed that discussions have been held with chief minister Siddaramaiah. To ensure transparency, the department is considering an e-auction system. Since the government has not issued new CL-2 licences since 1992, the availability of such a large number for auction is being seen as significant.

The government has also framed stricter rules for licence holders. If a shop remains closed for six consecutive months, its licence will be cancelled and put up for auction. Similarly, licences that are not renewed for one year will be placed for auction once every five years.

The excise department has invited objections regarding the notification, allowing a 10-day window for submissions.

Speaking to the media, minister Thimmapur said, “We have decided to re-auction licences where shops were not opened despite permits being issued. A draft is ready, and discussions with the CM are underway on whether to keep the auction general or reserve categories. The final decision will be made soon. We expect around Rs 2,000 crore in revenue. We are not issuing fresh licences, only re-auctioning the leftover ones.”