Kerala to tighten bar licence rules after 2017 loophole misuse

Kerala’s excise minister M. Liju announced on Monday that the state will review and likely change the procedure for granting bar licences after finding that officials misused a 2017 loophole. The loophole, created by the previous Left Democratic Front government, let Deputy Commissioners approve upgrades of beer and wine parlours to bars if the venues achieved a star rating. During the LDF’s ten‑year rule, 478 such parlours received FL3 licences under that rule. The new United Democratic Front government, however, says a licence cannot be granted solely on star rating; a social impact study must also be completed. The ministry has informed the High Court of the issue. Since the UDF took office, 29 fresh applications for bar licences have been filed, but a decision will wait until the new liquor policy is effective at the end of November. Recently, three excise officers were suspended for issuing licences to hotels in Ernakulam and Kottayam districts despite the government’s freeze on new licences pending the policy. The minister said the loophole let officials act without informing the government, and that the power to approve licences will be taken away from Deputy Commissioners. The move aims to close the gap that allowed rapid upgrades and ensure future licences follow a transparent, impact‑aware process.

Context

The 2017 order was meant to boost the hospitality sector, but allowing star‑rating alone to trigger bar licences omitted social impact checks. The UDF’s stricter approach mirrors a wider push in Indian states to tighten alcohol rules for public‑health and revenue reasons.