Daijiworld Media Network – Mangaluru

Mangaluru, Dec 25: The excise department is set to auction 38 defunct liquor licences in Dakshina Kannada and Udupi districts, officials said. Of these, 30 licences are in Dakshina Kannada and eight in Udupi. Across Karnataka, a total of 579 licences will be offered through online e-auctions.

The 2025-26 state budget proposed allocating unused liquor licences through a transparent electronic auction, aimed at generating additional resources for the state. The auction process has now commenced, with bidding scheduled to begin from mid-January. Officials noted that no new CL-2 and CL-9 licences have been issued since 1992, making this auction a significant development for the liquor trade sector.

Bindushree P, deputy commissioner of the excise department, Dakshina Kannada, said several licences have remained defunct for years despite repeated renewal reminders. “These licences became defunct due to legal issues, the death of owners with no successors, or a lack of interest among heirs in continuing the business. They are now being offered through e-auction,” she said.

Currently, Dakshina Kannada has about 584 liquor shops operating under various licences, including CL-2 and CL-9. “The licences currently issued are CL-7 and CL-11C,” she added.

T M Srinivas, deputy commissioner of the excise department, Udupi, said that as e-auction for liquor licences is being introduced for the first time, a training workshop will be conducted for bidders ahead of the main auction. Udupi district has a total of 455 liquor licences.

The licences will be valid for a period of five excise years. However, officials said investor response remains uncertain due to the high costs involved. In urban areas, the base bidding price starts at Rs 1 crore, while setting up the business requires an additional investment of around Rs 2 crore.