Govt to sell 579 liquor licences in Karnataka through online auction

Bengaluru, 23 September 2025: 

The Karnataka government has issued official draft notifications to allow the auctioning of 579 liquor licences, aiming to generate around ₹500 crore in revenue.

This move is not only expected to boost revenue but also open up the possibility of getting the liquor licenses for new players, which is in control of just a few hands and passed on to others on lease agreements.

Licences in Bengaluru are expected to fetch up to ₹3 crore each, while those outside the city may go for up to ₹1 crore.

The notification accompanies significant amendments to existing excise rules, including the Karnataka Excise (General Conditions of Licences) Rules, 1967, the Excise (Lease of Retail Vend of Beer) Rules, 1976, and the Excise (Sale of Indian & Foreign Liquors) Rules, 1968.

Stakeholders and citizens have been invited to submit objections or suggestions within ten days of publication in the official Gazette.

Key changes include the introduction of new licence categories CL-2A and CL-9A, designed for retail off-sale and bar-based liquor sales respectively.

The e-auction system will govern the allocation of lapsed or discontinued licences, including CL-2, CL-9, and CL-11(C), which will fall into the auction pool.

Successful bidders will operate under the new licence forms while adhering to MRP and operational guidelines.

The draft rules also clarify procedures for licence transfers in the event of a licensee’s death, standardize terminology, update procedural rules for Deputy Commissioners of Excise, and specify compliance requirements for licence holders, including sale limits and record-keeping.

Officials said the online auction process will reduce human intervention, ensure fairness, and create a competitive environment for liquor licence allocation, making the system more transparent and accountable.