Hospitality Career E-Mag: NEWS | Karnataka govt. refuses to issue fresh bar licences

The Karnataka government has said that it won't issue any fresh bar and wine shop licences and is in no hurry to introduce liquor. Satish Jarkiholi, Excise Minister, Government of Karnataka, soon after his recent meeting with department officials, said the 1992 government order on not issuing fresh licences will continue. "There is no proposal before the government to introduce cheap liquor," Jarkiholi said. Following the opening of discos and dance bars, as also the entrenchment of mall culture and entry of many star hotels in the city, bar licences have become an expensive affair due to the burgeoning demand.

The Veerappa Moily government in 1992 stopped issuing liquor licences. As a result, existing licence holders would make a killing, selling their permits for more than a crore rupees. Sources in the State Excise Department said that a bar and restaurant (CL-9) licence was recently sold for a whopping Rs 1.06 crore on Bengaluru International Airport (BIA) road. In other areas, CL-9s are being sold at Rs 80 lakh-90 lakh. Even the licence of a wine store (CL-2) is being sold for Rs 70 lakh and more, depending on the areas. Ever since the rule was formulated, successive governments haven't dared to revoke the order fearing backlash from voters.

M P Renukacharya, Excise Minister, Government of Karnataka, had moved the proposal to open fresh permits citing increase in population and demand for bars, but it was shot down by the then Chief Minister BS Yeddyurappa.

Source

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