What is a license for liquor?
- A license to sell alcoholic drinks at any venue is a permit issued by the State Excise Division.
- The license will only be given after close verification of all the particulars of the license holder, since it is an offence under various national laws to sell liquor without permit.
In addition to consuming liquor at Bars and Pubs, a large number of people in Delhi often consume liquor from liquor shops. These liquor shops have tremendous permanent resource for doing business regardless of its location or time of the day.
Why is the license for alcohol necessary?
- There is a provision to regulate the sale of liquor in order to preserve the safety and state of peace in the country and a licence for liquor is therefore required.
- Any individual without a permit or license from the state supervisor of the division of alcohol and tobacco control is not allowed to manufacture, distribute and sell intoxicating liquor.
- The trend of alcohol consumption is not only the part of the wealthy classes of society, but it is also consumed more by the Middle Class and poor young people. Easy availability, slow enforcement of regulations, etc. are the driving factors. A verification system is required to potentially prevent the inappropriate selling of liquor licences.
Anyone willing to sell liquor must seek permission from their respective state governments. Additionally, permission to sell or drink liquor at any other public place, wedding or social gathering is also required to be requested. Each state government has established certain rules and conditions which a person willing to sell hard drinks, beer, or wine must follow. Every state’s excise department issues specific licenses for various types of liquor stores.
The procedure of applying for a liquor license in Delhi for parties, restaurants, hotels, or clubs has been streamlined as the excise department said the system has been finally moved online. In an order issued in October 2017 by the excise department of the Delhi Government, officials were expressly instructed to stop accepting the requests in person.
What are India’s Liquor Laws?
- According to Article 47 of the Constitution of India, states are clearly directed to improving public health and, in particular, to banning intoxicating beverages and drugs harmful to health.
- Besides this, under the seventh schedule of India’s constitution, the issue of alcohol is included in the State List. Thus the law governing the selling and consumption of alcohol varies from one state to another.
- Only a person over the age of 21 can obtain a liquor license, and the process of obtaining such a license is quite lengthy and complicated.
Types of Liquors available
In the Indian market two types of liquor are available.
- Indian made foreign liquor (IMFL) : refers to the country’s manufactured’ hard liquor.’
- Imported foreign liquor (IFL) : It applies to the liquors manufactured outside India and subsequently imported into India. IFL is generally more expensive than IMFL.
Application Procedure for obtaining liquor license online
The Government of Delhi has started an online liquor licensing system to issue licenses to its residents.
Step 1: Log on to the official website, register first or already registered users can login.
Step 2: Click on Application Form.
Step 3: Submit the Form.
Step 4: License Issue, the officials will conduct proper verification based on the request for the type of license, after which the certificate will be issued.
Types of Liquor License
That State government issues different types of licenses. An individual or company can apply to award the following licenses:
1. Grant of L-1 license: For the wholesale supply of Indian Liquor
Every year the Delhi NCT government formulates policies for granting this license pursuant to which it is given to Indian liquor wholesale supply. A licensed manufacturing unit (distillery / brewery / winery / bottling plant) is given to a corporation or a business or partnership company or proprietorship company.
Procedure for applying this licence:
- Govt. Govt. Calls for proposals by releasing a public notice in the leading newspaper and on the Government’s official website.
- L-1 Licensee’s primary job is to supply liquor to the holders 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 licenses and other Delhi National Capital Territory licenses.
- An L-1 license holder must comply with all of the terms and conditions set out in the license contract.
2. Grant of L-6 License: For retail vendors
- L-6 License is issued to the Indian liquor / beer retail vendors granted to selected Delhi government undertakings.
- Proposals are invited by selected and authorized companies about premises for such liquor shop. The excise commissioner’s issues this license only after reviewing the suitability of such premises.
3. Grant of L-3/L-5 Licences: For hotels
- These licenses are granted by the government to hotels holding star classification and also approval from Govt’s Department of Tourism. Of India deemed necessary for the grant of a License in form L-3. This license empowers the residents in their rooms to sell international liquor.
- Such hotels can also obtain separate License in typeL-5 to serve the liquor in exclusive bars and on-site restaurants.
4. Grant of L-19 License: For clubs
A club registered with the Registrar of Companies / Registrar of Cooperative Societies is given the L-19 license for serving international liquor to its members. It is subject to the provisions of the 1914 Punjab Excise Act, as extended to Delhi’s National Capital Territory.
5. Grant of P-13 License: Temporary basis to hotels
Licensed hotels, restaurants and clubs are issued on a temporary basis to allow them to sell international liquor inside or outside their licensed premises so that they can only host a function on a particular day.
6. Grant of L-49A license: Marriages, Parties etc
This license can be obtained on payment of Rs. 3,000/-for liquor service in any organization, event, marriage etc. at specific premises anywhere in Delhi, except public parks, subject to the following conditions:-
- The place should be outside the public view.
- Liquor should be offered to adults over age 25.
- Liquor should be purchased at an approved source in Delhi.
Good cost strategy
It is wise to start a business only if the return is more than the capital investment plus direct and indirect expenses, especially in long run.
- You need to deposit application fee while obtaining a license. This fee varies from state to state and the type of license you are applying for.
- You also need licensed premises, the stock of liquor and staff to serve or sell liquor.
- You can calculate the initial cost of starting a liquor shop approximately a crore depending on the location and considering various other factors.
Even so, the Govt. of Delhi had put a temporary halt to the issuance of new licenses to restaurants as the government was convinced that the current number of liquor servers was sufficient to meet the demands of the city, but later the halt was raised because it served no purpose.