Government fixes Rs 1.5 crore base price per liquor permit in Bengaluru

Bengaluru: A total of 569 defunct liquor licences across the state will be auctioned starting January 13 with the government fixing the base price for each permit at Rs 1.5 crore in Bengaluru. 

This is the first liquor permit auction, which CM Siddaramaiah announced in the 2025-26 Budget. The state expects to rake in revenues of Rs 500-1,000 crore.  

Going under the hammer are CL-2 (retail liquor shop) and CL-9 (bar & restaurant) licences. Two new categories will be added for auctioned licences: CL(2-A) and CL(9-A).

Karnataka has not issued new CL-2 and CL-9 licences since 1992, making them prized possessions. There are 3,995 CL-2 and 3,637 CL-9 licences, which are renewed annually. 

Due to the freeze on new CL-2 and CL-9 licences, existing permits are sold at huge prices every year, running into a few crores, including bribes. The government, however, gets only annual fees for these licences, which ranges from Rs 4 lakh to  Rs 7.5 lakh. 

Of the 569 licences that will be auctioned, 477 are for retail shops. Bidding for almost all licences available in Bengaluru will start from Rs 1.5 crore. Some licences in Belagavi and Ballari have a base price of Rs 1.1 crore. The lowest base price is Rs 70 lakh for licences available in places like Honnavar (Uttara Kannada), Tirthahalli (Shivamogga) and Shiggaon (Haveri).  There are 92 bar & restaurant licences that will be auctioned. All of them have a base price of Rs 1.1 crore to Rs 1.5 crore. The government expects bidding to go up to Rs 3 crore per licence in Bengaluru.

Auctioned licences will be valid for five years (up to 2030). The online auction will be conducted on portal of public sector undertaking MSTC Ltd -- www.mstcecommerce.com

Live bidding for the licences will start from January 13 to 20. The excise department has started registration of bidders. Training for bidders will be provided up to January 7.