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How To Get A Bar License In India | How To Get Bar Licence in India

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Each year Government of NCT formulates the Excise Policy and approves Terms & Conditions for grant of L-1 licenses. In pursuance to this policy and thus the approved terms & conditions, licences in form L-1 are granted for the wholesale supply of Indian liquor. These are granted to a corporation or a society or a partnership firm or proprietorship firm having licensed manufacturing units (distillery / brewery /winery/bottling plant).

The applications for the grant of Licence are invited through the overall public notice published during a number of the leading newspapers and within the official website of the Department. An application for the grant of L-1 Licence is required to be made in response to the overall public notice within the prescribed format in conjunction with its Appendices ('B' and 'C') to the Dy. Commissioner of Excise. The main activity under L-1 Licensee is to supply liquor to the holders of Licenses in form L-6, L-7,L-9,L-10,L-12,L-13,L-14,L-15,L-16,L-17,L-18,L-19,L-20,L-21,L-28,L-29 and other liquor licences.

The aspirants for the grant of L-1 Licences got to suits the procedure as laid down within the terms and conditions for the grant of L-1 Licences which are made available within the Office during the notice period. The applicant possesses to submit the next documents along with the appliance on the prescribed format:

Categories of liquor

There are two sorts of liquor available within the Indian market.

  1. Indian made foreign liquor (IMFL): It refers to ‘Hard Liquor’ manufactured in the country.
  2. Imported foreign liquor (IFL): This refers to the liquors which are produced outside of India and later on imported to India. IFL is usually expensive than the IMFL.

Types of Liquor License

Various types of licenses are issued by each state government. Any individual or company can get the following licenses:

 

Grant of L-1 license - For the purpose of wholesale supply of Indian Liquor: The government of NCT of Delhi once a year formulates policies for grant of this license in pursuance of which it's granted to the wholesale supply of Indian liquor. It’s granted to Company or a society or a partnership firm or proprietorship firm having licensed manufacturing units (distillery / brewery /winery/bottling plant).

  • Procedure for application of this license: The govt. invites applications by issuing a public notice during a leading newspaper and on the official website of the Govt.
  • The prime job of L-1 Licensee is to provide liquor to the holders of Licenses of L-6, L-7, L-9, L-10, L-12, L-13, L-14, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29 and other liquor licenses within the capital Territory of Delhi.
  • The holder of L-1 license has got to suits all the terms and conditions mentioned within the license contract.
 

Grant of L-3/L-5 Licences: For hotels: Such license can be granted for hotels, which are holding star classification and the approval from Tourism Department of Govt. of India which is taken into account necessary for grant of License in form L-3.

  • L-3 license authorizes the hotel for offering foreign liquor to the customers in their rooms.
  • These hotels also can seek separate License in form L-5 for serving the liquor in exclusive bars and therefore the restaurants within the hotel premises.

Grant of L-19 License:For clubs: L-19 license can be issued to a club registered with the Registrar of Firms/Registrar of Cooperative Societies for facilitate of foreign liquor to its members.

 

6)Grant of L-49A license: Marriages, Parties etc, this license can be obtained on payment of Rs. 3,000/- for serving of liquor in any party, function, marriage etc. at a particular premises anywhere in Delhi exclusive of public parks subject to the following conditions.

  • The area should be away from public view.
  • Liquor should be served to adults above 25 years of age.
  • Liquor should be procured from authorized source in Delhi. 

THE CATCH!

  1. Any person willing to sell liquor needs to seek permission from their respective state governments for this purpose.
  2. Alternatively, permission is also to be sought while selling or consume liquor at any other public place, wedding or social gathering.
  3. Each government has laid down certain rules and conditions that has got to be followed by an individual willing to sell hard drinks, beer or wine.
  4. The excise department of each state grants different licenses for different types of liquor shops.

 

Silver lining- Process has been simplified!

  1. The approach of applying for a liquor & bar licence for parties, restaurants, hotels, or for clubs in Delhi has been simplified because the excise department said it's completely moved the system online.
  2. In an order issued by the Delhi government’s excise department in October 2017, the officials were explicitly directed to stop accepting the applications in person.

What is a liquor license?

  1. A liquor licence may be a permit given by the state excise department to those that wish to sell alcoholic beverages at a particular place.
  2. This license is issued only after close scrutiny to all or any the small print of the license holder because selling liquor without a license is an offence under various state laws.

Why is liquor license required?

  1. The phenomenon of the consumption of alcohol isn't only among the rich class of the society, but even the centre class and therefore the poor youth consume it more at a higher extent. The factors which trigger them are the straightforward availability, weak implementation of laws etc.
  2. It's unlawful for a private to manufacture, distribute or sell intoxicating liquor without a state license issued by the state supervisor of the division alcohol and tobacco control.
  3. Therefore, to maintain the health and the state of peace & order in the country, there is a requirement to regulate the selling of liquor and hence a liquor license is necessary.

What are the liquor laws in India?

  1. The constitution of India under Article 47 clearly directs the states to enhance public health and especially cause prohibition within the intoxicating drinks and medicines which are injurious to health.
  2. Aside from this, the topic of alcohol is included within the state list under the seventh schedule of the constitution of India. Thus, the act, which administrates the sale and consumption of alcohol, varies from state to state.
  3. An individual above the age of 21 years only can obtain liquor licence and therefore the process to get such a license is sort of long and challenging.

So you are just a click away to apply for  to get your license!! Cheers!!

 

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Author
Vinay Singh
Vinay Thakur is Managing Partner in Corpseed. He focused on payments, digital transformation, and financial technology for over 15 years and holds strong expertise on fintech startups, banking innovation, and investors with a keen understanding of the trends and activities of startups, banks, and investors in the space.