Karnataka excise dept to auction 38 defunct liquor licences in Dakshina Kannada, Udupi

Karnataka excise dept to auction 38 defunct liquor licences in Dakshina Kannada, Udupi

Mangalore Today News Network

Mangaluru, December 26, 2025: The Karnataka excise department is set to auction 38 defunct liquor licences in Dakshina Kannada and Udupi districts, officials said. Of these, 30 licences are located in Dakshina Kannada and eight in Udupi. Across the state, a total of 579 liquor licences will be put up for sale through online e-auctions.

The move follows a proposal in the 2025–26 state budget to allocate unused liquor licences through a transparent electronic auction process, aimed at generating additional revenue for the state. The auction process has begun, with bidding scheduled to start from mid-January. Officials noted that no new CL-2 and CL-9 licences have been issued since 1992, making this a significant development for the liquor trade.

Bindushree P, Deputy Commissioner of the excise department in Dakshina Kannada, said many licences had remained defunct for years despite repeated renewal notices. “These licences became inactive due to legal disputes, the death of licence holders without successors, or a lack of interest among heirs in continuing the business. They are now being offered through e-auction,” she said.

At present, Dakshina Kannada district has around 584 operational liquor outlets under various licences, including CL-2 and CL-9. “The licences currently being issued are CL-7 and CL-11C,” she added.

T M Srinivas, Deputy Commissioner of the excise department in Udupi, said that as the e-auction of liquor licences is being introduced for the first time, a training workshop will be organised for prospective bidders ahead of the auction. Udupi district currently has 455 liquor licences.

The licences will be valid for five excise years. However, officials said investor response remains uncertain due to the high cost involved. In urban areas, the base bidding price starts at Rs 1 crore, while setting up the business may require an additional investment of around Rs 2 crore.