Karnataka to Issue 574 New Liquor Licences via E-Auction, Confirms CM DK Shivakumar

By Political Bureau, Bangalore Mail

Published: June 27, 2026

BENGALURU: In a major move to streamline revenue generation and modernize operations, the Karnataka state government has decided to issue 574 new liquor licences across the state through a transparent e-auction process.

The announcement was made by Chief Minister DK Shivakumar during a high-level review meeting with top officials from the Excise Department on Friday.

Financial Relief for Existing Licence Holders

In a bid to ease the financial strain on the hospitality and liquor retail sector, Chief Minister Shivakumar directed excise officials to allow current licence holders to pay their annual licence renewal fees in two instalments. This decision is expected to bring significant relief to local business owners who have been navigating a challenging economic environment.

Furthermore, with an eye on maximizing state revenue and boosting operational efficiency, the Chief Minister instructed the department to thoroughly study the functioning and administrative models of excise departments in neighbouring states.

Overhaul and Warnings Against Misconduct

Taking a tough stance on transparency, the Chief Minister issued a stern warning to excise officials against any form of corruption or misconduct. He emphasized that the government would have zero tolerance for any actions that tarnish its image or reputation.

“Stringent action will be taken against anyone found violating professional standards,” Shivakumar warned, adding that the government is prepared to introduce legislative changes if necessary.

In an unprecedented move to ensure accountability, the Chief Minister debunked the long-standing belief that Excise Department staff cannot be transferred to other government departments. He stated that the state government is ready to amend existing laws to facilitate cross-departmental transfers if employees fail to meet standard protocols or engage in malpractice.

New Alcohol System Yields Positive Revenue

Reviewing the financial health of the department, Chief Minister Shivakumar noted that the recent implementation of the new AIB (Alcohol in Beverage) system has already begun yielding highly encouraging results. The state expects the upcoming e-auctions and tighter regulatory frameworks to significantly boost Karnataka’s excise revenue targets in the coming quarters.