Introduction: Liquor License in India

Liquor or spirit including hard drink, or distilled alcohol is an alcoholic drink created by the distillation of grains, fruits, or vegetables that have already experienced alcoholic fermentation. The distillation method concentrates the liquid to extend its alcohol by volume. As liquors contain considerably more alcohol (ethanol) than different alcoholic drinks, they are thought of as harder. In North America, the term hard drink is typically used to distinguish distilled alcoholic drinks from non-distilled ones, whereas the term spirits is employed within the UK. Some examples of liquors include hard liquor, vodka, absinthe, gin, rum, tequila, and whisky. For the manufacturing and sale of these products, you need to get a Liquor Licence in India.

--------------Blog Contact Form-------------

Alcohol is often high in demand in states like Delhi, Uttar Pradesh, Maharashtra and Uttarakhand. It helps in generating a serious part of revenue for the state government. On 29 March 2021, the city cupboard declared a brand-new excise policy for a brand-new Liquor search License, aspiring to amend the sale and consumption of liquor. It's meant to revise the minimum age for consumption of liquor by reducing it from 25 years to 21 years.

Need for the License

In India, the foundations and rules regarding the sale and consumption of alcohol vary from state to state. This is often a result of the topic of alcohol being mentioned within the state list beneath the Seventh Schedule of the Indian Constitution. The excise department in the city administers acts as the liquor head. The legal age for consumption of alcohol has been specified in every State. The legal age is also the Consumption Age in this context. Under Section 23 of the Delhi Excise Act, 2010 and Delhi Liquor License Rules, 1976, the legal age for alcohol consumption is 25.

Types of Liquor in India

There are multiple types of liquor available in the Indian market. Some of the major liquor variants are as follows-

• Indian Made Foreign Liquor (IMFL): This kind of liquor refers to the hard drink factory-made in India.
• Imported Foreign Liquor (IFL): This kind of liquor is manufactured outside and later imported from foreign to India. These liquors are sometimes higher in the rates than Indian-made foreign liquor (IMFL).

Liquor Law in India

Article 47 of the Indian Constitution prescribes the State to bring on prohibition of the consumption apart from the healthful purpose of intoxicating drinks and medicines that are injurious to health. Significantly, five states within the country are prohibited from the sale, purchase and consumption of alcohol.

Types of Liquor Licenses

The License Rules, 1976 pronounce the kinds of licenses that serve liquor within the State. Besides this, the act additionally has the provision of safe and quality liquor to its customers. There are many classes of licenses for various variants of liquor. Some of the liquor brands, which need special mercantilism licenses are as follows-

1. Indian Made Foreign Liquor (IMFL)
2. Country Liquor
3. Denature & Special Denatured Spirit
4. Rectified Spirit
5. Wholesale Retail Merchant for Indian Made Foreign Liquor

• L-1 License for Liquor

The L-1 license is for wholesale retail to companies, societies, partnerships, or proprietorships subject to the condition that the person owns a distillery, breweries, manufacturing units, and bottling plants. It should also abide by the terms and conditions ordained by the involved authorities to get the L1 Liquor Licence.

• L-6 License for Liquor

The L-6 license is for retail sales of foreign liquor or beer. Issuing of L6 Licence is to decide on undertakings of the city government, particularly DTTDC, DSIDC, DSCSC and DCCWS.

• L-9 License for Liquor

The L-9 license is for the retail sale of varied brands of Indian liquor and foreign liquor. This license was antecedently called L-52 D. To obtain an L-9 license you need to abide by the terms and conditions ordained by the involved authorities of the respective state.

• L-10 License for Liquor

The L-10 license is for the retail sale of varied brands of Indian liquor and foreign liquor. However, the terms associated with an L-9 license don't apply to L-10 licenses. The annual fee for the L-10 license is Rs 8,00,000/- which is to be paid by the licensee in favour of the Deputy Commissioner.

• P-10 and P-13 Liquor Licence for Personal Gatherings

These licenses are temporary licenses for serving liquor at parties, functions and conferences. The terms and conditions ordained for these licenses vary for residents, hotels, clubs, restaurants and different premises.

• L-15 and L-16 Liquor Licence for Star Hotels

These licenses are for the star hotels that are approved by the Department of Commercial Enterprise to accommodate tourists. The edifice management must abide by the terms and conditions ordained by the authorities to obtain these licences and serve liquor on their premise.

• L-17 and L-18 for Star Hotels in Industrial Space

These licenses are for the star hotels that are approved by the Department of Commercial Enterprise. These institutions should be situated in an industrial space with adequate houses for parking.

• L-28 and L-29 Liquor Licence for Clubs

The L-28 license is for clubs that are registered with the registrar of firms or registrar of cooperative societies to supply services of foreign liquor to its club members. All clubs that conform to the desired terms and conditions may apply and obtain the L-28 Liquor Licence. The L-29 license is for clubs or messes that have liquor or brew completely for presidency Servants. These clubs do not seem to be subject to industrial rates and rules. The application procedure and the needed documents for the associate L-29 liquor license are almost like those of the L-28 liquor license.

Application Procedure

The state governments have a web-based licencing program for the efficient issuance procedure for the liquor licence in their jurisdiction. The process involves the following steps-

• Access the Website: Initially, the individual should navigate to the designated official portal.
• Log in to the License Portal: The retail merchant will need to input their username and password. First-time applicants can select the 'Register' option to provide the necessary details.
• Navigate to the Application Form: The retail merchant is required to select the appropriate application form and input all the required information.
• Complete the Submission: Once all the details are entered, the retail merchant can finalize the submission by selecting the 'Submit' option.
• License Approval: Depending on the specific license request, the authorities will conduct thorough verification before issuing the official license certificate.

Renewal and Cancellation of Liquor License

To retain or renew a liquor license, the licence holder needs to submit the annual licencing fee to the appropriate authority. A liquor license can be cancelled if the licensee violates any rules which are made by the regulatory authority. In addition to this, the cancellation licence will be enacted on those licensees who sell alcohol on dry days or to minors which is not allowed according to laws. If the liquor licence is not renewed on or before the time then it is considered cancelled and the business operator needs to renew it to continue running the liquor business or consumption.

Guidelines for Liquor Look Interior as per State Government Rule

The successful applicant must submit the inside arrangement of their projected look insertion the given following points-

• The shop floor should be set up in such a way that liquor brands can be displayed alongside their price tags.
• The interior of the shop should be designed in a manner to ensure proper lighting, flooring and hygiene.
• A licensee should ensure that the shop should be fully insured against fire and natural hazards.

Conclusion

In conclusion, the process of obtaining a liquor license in India involves navigating a comprehensive set of regulations and guidelines governed by state-specific laws. From the various types of licenses catering to diverse liquor variants to the rigorous application and verification process, the system demands adherence to specific protocols. The state governments facilitate the licensing procedure through online portals, ensuring efficient processing and verification. Renewal and cancellation of licenses are subject to adherence to regulatory rules, with cancellation occurring in cases of violation. The intricacies of this regulatory framework underscore the importance of adhering to legal provisions and maintaining responsible business practices within the Indian liquor industry.