Karnataka Excise (General Conditions of Licences) (Second Amendment) Rules, 2025

(cid:315)(cid:175)ೇಷ (cid:170)ಾಜ(cid:205) ಪ(cid:294)(cid:206)(cid:144)ೆ ¨sÁUÀ– 4J 23 2025 01 1947) . 625 Part – IVA BENGALURU, TUESDAY, 23 SEPTEMBER, 2025 AASHWAYUJA 01, SHAKAVARSHA 1947) No. 625 GOVERNMENT OF KARNATAKA No. FD 7 PES 2025 Karnataka Government Secretariat Vidhanasoudha, Bengaluru, dated:23rd September 2025

NOTIFICATION-I The draft of the following rules further to amend the Karnataka Excise(General Conditions of Licences) Rules, 1967, which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) is hereby published as required under sub-section (1) of section 71 of the said act for the information of all the persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after the expiry of Ten days from the date of its publication in the official Gazette.

Any objection or suggestion which may be received by the State Government from any person in respect to the said draft before the expiry of period specified above will be considered by the State Government. The objections or suggestions may be addressed to the Principal Secretary to Government, Finance Department, Vidhana Soudha, Dr, B.R. Ambedkar Veedhi, Bengaluru-01.

DRAFT RULES

1. Title and commencement: -(1) These rules may be called the Karnataka Excise (General Conditions of Licences) (Second Amendment) Rules, 2025.

(2) They shall come into force from the date of their final publication in the official Gazette.

2. Amendment of rule 5:-In the Karnataka Excise (General Conditions of Licences) Rules, 1967(hereinafter referred to as the ‘said rules’), in rule 5, in sub-rule (4),in the proviso, for the word, letters and figure “or Form CL-9”, the words, letters and figures “or Form CL-9 or Form CL-9A” shall be substituted.

(1)2

3. Amendment of rule 17-A:- For rule 17-A of the said rules, the following shall be substituted,namely:- “17-A. Transfer in the event of death – In the event of death of the licensee or the lessee during the validity(currency) of the licence or lease or within a period of six months from the date of death of the licensee or the lessee, the Deputy Commissioner may on an application by the legal heirs of the deceased with the previous sanction of the Excise Commissioner, transfer the licence or the lease as the case may be, in their favour:

Provided that, the legal heir of the deceased licensee or the guardian of the legal heir shall inform the Deputy Commissioner of Excise about the death of the licensee within forty five days from the date of death, failing which, the authority granting the licence shall impose a fine equivalent to ten percent of the licence fee.

Provided further that, no such fine shall be levied unless an opportunity of being heard is given to the legal heir of the deceased licensee or the guardian of the legal heir”.

4. Amendment of rule 17-B:- In rule 17-B of the said rules, in sub-rule (3), for the words “or impose a fine”, the words “or impose a fine equivalent to ten percent of the licence fee” shall be substituted.

5. Amendment of rule 23:- In rule 23 of the said rules-

(i) for the words “Deputy Commissioner”, wherever it occurs, the words “Deputy Commissioner of Excise” shall be substituted

(ii) in the first proviso, for the words, letters and figures “in case of CL-2 and CL-9 licences”, the words, letters and figures “in case of CL-2, CL-2A, CL-9 and CL- 9A licences” shall be substituted.

(iii) the fourth proviso shall be omitted.

By Order and in the Name of the Governor of Karnataka Sd/- (Bhimappa P Ajoor) Under Secretary to Government, Finance Department (Excise)3 GOVERNMENT OF KARNATAKA No. FD 7 PES 2025 Karnataka Government Secretariat Vidhanasoudha, Bengaluru, dated:23rd September 2025

NOTIFICATION-II The draft of the following rules further to amend the Karnataka Excise (Lease of the Right of Retail Vend of Beer) Rules, 1976, which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) is hereby published as required under sub-section (1) of section 71 of the said act for the information of all persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after the expiry of Ten days from the date of its publication in the official Gazette.

Any objection or suggestion which may be received by the State Government from any person in respect of the said draft before the period specified above will be considered by the State Government. The objections or suggestions may be addressed to the Principal Secretary to Government, Finance Department, Vidhana Soudha, Dr.

B.R. Ambedkar Veedhi, Bengaluru -01.

DRAFT RULES

1. Title and commencement: - (1) These rules may be called the Karnataka Excise (Lease of the Right of Retail Vend of Beer) (Second Amendment) Rules, 2025.

(2) They shall come into force from the date of their final publication in the official Gazette.

2. Amendment of rule 5:- In the Karnataka Excise (Lease of the Right of Retail Vend of Beer) Rules, 1976, in rule 5, in sub-rule (1), for the word, letters and figure “or Form CL-9”, the words, letters and figures “or Form CL-9 or Form CL-9A” shall be substituted.

By Order and in the Name of the Governor of Karnataka Sd/- (Bhimappa P Ajoor) Under Secretary to Government, Finance Department (Excise)4 GOVERNMENT OF KARNATAKA No. FD 7 PES 2025 Karnataka Government Secretariat Vidhanasoudha, Bengaluru, dated:23rd September 2025

NOTIFICATION-III The draft of the following rules further to amend the Karnataka Excise(Sale of Indian & Foreign Liquors) Rules 1968, which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) is hereby published as required under sub-section (1) of section 71 of the said act for information of all persons likely to be affected thereby and notice is hereby given that the said draft will be taken into consideration after the expiry of Ten days from the date of its publication in the official Gazette.

Any objection or suggestion which may be received by the State Government from any person in respect of the said draft before the period specified above will be considered by the State Government. The objections or suggestions may be addressed to the Principal Secretary to Government, Finance Department, Vidhana Soudha, Dr.

B.R. Ambedkar Veedhi, Bengaluru - 01.

DRAFT RULES

1. Title and commencement:- (1) These rules may be called the Karnataka Excise (Sale of Indian & Foreign Liquors) (Second Amendment) Rules, 2025.

(2) They shall come into force from the date of their final publication in the official Gazette.

2. Amendment of rule 2:- In the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968, (hereinafter referred to as the ‘said Rules’) in rule 2,-

(i)after clause (a), the following clauses shall be inserted, namely:- "(a-1) "Auction pool" refers to those licences which are lapsed or not renewed as per the provisions of the Act and rules made thereunder that are available and made available for “e-auction;

(a-2) “Bid Amount” means the total monetary offer made by a bidder in response to invitation to auction, indicating what they are willing to pay for the licence. (a-3) “e-auction” means an online auction service in which eligible participants bid for grant of any Licence provided under these rules and carried out through “electronic platform” as per notification issued by the Government from time to time."5

(ii)after clause (f), the following clause shall be inserted, namely:- "(f-1) "winning bid" is the highest offer submitted by a qualified bidder during auction, which is accepted by the Excise Department for the grant of a licence in specified area for a definite period."

3. Amendment of rule 3:- In rule 3 of the said rules-

(i)after sub-rule (2), the following shall be inserted, namely:- "(2-A) Retail off shop licences for vend of Indian liquor or Foreign liquor or both not to be drunk on the premises-Not withstanding anything contained in rule-12, these licences shall be granted in Form CL-2A for the sale of Indian or Foreign Liquor or both in sealed bottles to successful bidders, where bidding process shall be carried through "e-auction. The discontinued CL-2 licences, CL-2 licences which are yet to be granted as per 1987 quota(vide Government order No. HD 452 EFL 86, dated 30.06.1987), the discontinued CL-11(C) licences, CL-11(C) licences which are yet to be granted as per allotment to the Mysore Sales International Limited( M.S.I.L) as per the Government Order No. FD 7 EFL 2008, dated 03.07.2009 and Government Order No. FD 15 EFL 2015, dated 23.09.2016 respectively, shall be granted in Form CL-2A to successful bidders, where bidding process shall be carried through “e-auction”.

Provided that, the payment of licence fee and additional licence fee for the purpose of CL-2A shall be as specified by the Government from time to time"

(ii) after sub-rule (9), the following shall be inserted, namely:- "(9-A) Refreshment Room (Bar) Licence.- These licences shall be granted in Form CL-9A for the sale of Indian or Foreign Liquor or both combined with the supply of meals or eatables. The dis-continued CL-9 licenses shall be granted in Form CL-9A to successful bidders, where bidding process shall be carried through “e-auction;

Provided that the provisions contained in sub-rule (9) of rule 3 pertaining to functioning of CL-9 Licence shall mutatis mutandis apply to the CL-9A Licence.

Provided further that, the payment of licence fee and additional licence fee for the purpose of CL-9A shall be as specified by the Government from time to time"6

4. Amendment of rule 5:- In rule 5 of the said rules, after the third proviso, the following proviso shall be inserted, namely:- “Provided also that, the Deputy Commissioner may grant CL-2A, CL-9A Licences to successful bidder in e-auction with the previous approval of the Excise Commissioner, following the reservation norms fixed for this purpose by the government and subject to the conditions specified in e-auction notification issued from time to time”.

5. Amendment of rule 5-A:- In rule 5-A of the said rules;-

(i)in sub-rule (3), for the existing proviso the following provisos shall be inserted,

namely:- “Provided that, nothing in sub-rule 5-A (3) shall be applicable to CL-2, CL-9 and CL-11(C) Licences.

Provided also that,

(a) the CL-2, CL-9, CL-11(C) licences which have not been renewed as on the date of final publication of the Karnataka Excise( Sale of Indian and Foreign Liquors) (Second Amendment) rules, shall be deemed to have lapsed and forfeited. Such licences shall not be eligible for renewal and no rights shall accrue to the licensee in respect thereof, and these licences shall fall into the auction pool for auctioning;

(b) CL-2, CL-9, CL-11(C), CL-2A and CL-9A licences which are not renewed within a period of six months from the commencement of Excise year, or, within a period of six months from the date of death of the licensee, are considered as lapsed and forfeited. Such licences shall not be eligible for renewal, and no rights shall accrue to the licensee in respect thereof, such licences shall fall into the auction pool for auctioning;

(ii)Sub-rule 4 shall be omitted.

6. Amendment of rule 12:- In rule 12 of the said rules, in sub-rule (3) after

explanation, the following proviso shall be inserted, namely:- “Provided that, nothing in rule 12 shall be applicable to CL-2A licences"

7. Insertion of new Forms CL-2A :- In the said rules after Form CL-2 and the entries relating thereto the following Form shall be inserted, namely:-7 “Form CL-2A [See rule 3(2-A)] Licence for the retail off vend of Indian Liquor (other than Arrack) or Foreign Liquor, or both.

Register No………………………………..

Name of Licence Holder………………… Address of Licence Holder.............. and Address of Licence................

Locality Town……………..

Street…………… Door No……… I,……………..the Deputy Commissioner of the ……………..District (in case of grant of licence)/Deputy Commissioner of Excise…………..District (in case of renewal of licence) in consideration of the payment of the prescribed licence fee of Rs………………..do hereby authorise Sri………..son of Sri………….. residing in ………….to sell Indian Liquor (other than arrack) or Foreign Liquor or both at premises No……….situated in…………..subject to the conditions prescribed below:- CONDITIONS

1. The licensee shall be bound by the provisions of the Karnataka Excise Act, 1965(Karnataka Act 21 of 1966) Notifications and any general or special rules prescribed thereunder and the Orders issued by the Excise Commissioner/Deputy Commissioner from time to time.

2. The privilege under this licence extends to the sale of Indian liquor (other than arrack) or Foreign liquors of the brands furnished by the licensee. Any alterations and additions to the lists furnished should be approved by the Deputy Commissioner.

No liquors below the strength of 25° under proof in case of Brandy, Whisky and Rum and 35° under proof in case of Gin and not more than 8 per cent of alcohol by volume in case of Beer will ordinarily be included in the list.

3. The holder of this licence shall upon requisition by any Officer not below the grade of a Sub-Inspector of Excise be bound to produce to such officer the original invoice showing the importation of all liquors for the sale of which this licence is granted for inspection and to allow the samples of liquors in the shop to be tested.

4. The licensee is bound to maintain correct daily accounts of transactions and submit the return every month to the Excise Officers concerned, within the first week of the following month.

5. The licence may be suspended or cancelled in accordance with the provisions of

Section 29 of the Act and licensee or his employee shall be liable for prosecution for breach of any of the conditions of the licence, under the provisions of the Act or the rules and orders thereunder.8

6. The licence shall continue in force till the..................

7. The sale of liquor to the public will be in sealed bottles of capacity of 0.060, 0.090,

0.180, 0.300, 0.375, 0.600, 0.750 litres and one litre in respect of liquors and 0.325 and 0.650 litres in the case of beer. The maximum quantity of liquors and beer to be

sold at a time should not exceed:

(1) Foreign liquors 9.1 litres

(2) Indian liquors (other than arrack) 2.3 litres

(3) Beer 18.2 litres

Provided that the Excise Commissioner may for reasons to be recorded in writing,

permit the sale of liquor in any other quantity:

Provided further that, the licensee may sell Indian Liquor/Foreign Liquor/Country Beer/Wine/Fortified Wine to a person holding a licence in Form CL-5 and issue bills accordingly. The maximum quantity prescribed for possession, sale and transport of these intoxicants under rule 21 of the Karnataka Excise (Possession, Transport, Import and Export of Intoxicants) Rules, 1967, shall not be applicable in case of sale to a person holding a licence in Form CL-5.

8. No liquor shall be allowed to be drunk on the premises.

8-A. The licensee shall sell or permit to sell Indian Liquor or Foreign Liquor or both at prices not exceeding the Maximum Retail Price (MRP) indicated on the labels of the bottles as declared under rule 2-AF of the Karnataka Excise (Excise Duties and Fees) Rules, 1968 and issue bills to the customers accordingly.

9. The opening and closing hours shall be from ……… to………...

10. There shall be only one and the same entrance and exit for the shop. [Office of the Deputy Commissioner... District (in case of grant of licence)/Office of the Deputy Commissioner of Excise....... District (in case of renewal of licence)]

Date: Deputy Commissioner.......... District (in case of grant of licence)/Deputy Commissioner of Excise ..... District (in case of renewal of licence)

8. Insertion of new Form CL-9A:- In the said rules, after Form CL-9 and entries relating thereto, the following Form shall be inserted, namely:-9 “Form CL-9A [See rule 3(9-A)] Licence for the sale of Indian Liquor (other than Arrack) or Foreign Liquor or both to be drunk in the premises, combined with meals and refreshments in the Refreshment Rooms (Bars) Register No………………………………..

Name of Licence Holder………………… Address of Licence Holder................ and Address of Licence.............

Locality Town……………..

Street…………… Door No……… I,……………..the Deputy Commissioner of the ……………..District (in case of grant of licence)/Deputy Commissioner of Excise…………..District (in case of renewal of licence) in consideration of the payment of the prescribed licence fee of Rs………………..do hereby authorise Sri………..son of Sri………….. residing in ………….to sell Indian Liquor (other than arrack) or Foreign Liquor or both at premises No……….situated in…………..subject to the conditions prescribed below:- CONDITIONS

1. The licensee shall be bound by the provisions of the Karnataka Excise Act, 1965(Karnataka Act 21 of 1966), Notifications and any general or special rules prescribed thereunder and the Orders issued by the Excise Commissioner/Deputy Commissioner from time to time.

2. The privilege under this licence extends to the sale of Indian liquor (other than arrack) or Foreign liquors of the brands furnished by the licensee. Any alterations and additions to the lists furnished should be approved by the Deputy Commissioner.

No liquors below the strength of 25° under proof in case of Brandy, Whisky and Rum and 35° under proof in case of Gin and not more than 8 per cent of alcohol by volume in case of Beer will ordinarily be included in the list.

3. The holder of this licence shall upon requisition by any Officer not below the grade of a Sub-Inspector of Excise be bound to produce to such officer the original invoice showing the importation of all liquors for the sale of which this licence is granted for inspection and to allow the samples of liquors in the shop to be tested.

4. The licensee is bound to maintain correct daily accounts of transactions and submit the return every month to the Excise Officers concerned, within the first week of the following month.10

5. The licence may be suspended or cancelled in accordance with the provisions of

Section 29 of the Act and licensee or his employee shall be liable for prosecution for breach of any of the conditions of the licence, under the provisions of the Act or the rules and orders thereunder.

6. The licence shall continue in force till the..................

7. The sale of liquor is restricted to persons supplied with meals or refreshment prepared and served for consumption in the premises only.

8. The opening and closing hours shall be from ……… to………... [Office of the Deputy Commissioner... District (in case of grant of licence)/Office of the Deputy Commissioner of Excise....... District (in case of renewal of licence)]

Date: Deputy Commissioner............. District (in case of grant of licence)/Deputy Commissioner of Excise ........ District (in case of renewal of licence)” By Order and in the Name of the Governor of Karnataka Sd/- (Bhimappa P Ajoor) Under Secretary to Government, Finance Department (Excise)11 I – , “ ” , “ ” – “17 – “12 ”.

– “ ” , “ ” – i “ ” “ ” i i , “ ”, , “ ” i i13 II – “ ” “ ”14 III – i “ Auction Pool ” “ ” “ ” “ ” electronic-platform ” i i Winning Bid15 – i “(2 “ ” M.S.I.L FD07EFL200 :FD15 EFL 2015 “ ” i i “ ” – “ ”.

– i “16 A A ”. i i – “ ”. – ……………… …………… …… … ……… ………… ……………………… ………………… ………………… ……… ………… … …………… ………………17 under proof under proof ………………18 ……………… ……… …………… …………… ……………… ……… – “ ……………… …………… …… … ……… ………… ……………………… ………………… ………………… ……… ………… … ……………19 ……………… under proof under proof ……………… ……………… ………R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19 Licensed to post without prepayment WPP No. 297 20 …………… …………… ……………… ” ……… ಮುದ(cid:206)ಕರು (cid:178)ಾಗೂ ಪ(cid:206)(cid:144)ಾಶಕರು:- ಸಂಕಲ(cid:163)ಾ(cid:297)(cid:144)ಾ(cid:312)ಗಳ(cid:133), ಕ(cid:163)ಾ(cid:143)ಟಕ (cid:170)ಾಜ(cid:205)ಪತ(cid:206), ಸ(cid:144)ಾ(cid:143)(cid:312) (cid:144)ೇಂದ(cid:206) ಮುದ(cid:206)(cid:158)ಾಲಯ, (cid:166)ೆಂಗಳ(cid:136)ರು