BENGALURU: The Karnataka State Government has issued a draft notification calling for objections within 10 days from the issuance of the notification, on the proposed amendment to the Karnataka Excise (General Conditions of Licences)
Rules, 1967, Karnataka Excise (Lease of the Right of Retail Vend of Beer) Rules, 1976, and Karnataka Excise (Sale of Indian & Foreign Liquors) Rules 1968, for e-auctioning of defunct/unused licences “to aid in additional resource mobilisation (ARM) to the State”, read the notification dated September 23.
The TNIE had run the news report on the proposed electronic auction of around 588 defunct Excise licences in Karnataka, in its August 14 edition.
Out of around 588-odd licences that are likely to go under the hammer, 288 are said to be 11-C (government-owned Mysore Sales International Limited retail outlet) licences, followed by 204 CL-2 (retail liquor shops) and 96 CL-9 (bars & restaurants),” said sources on condition of anonymity.
“These licences have not been renewed for whatever reason, and have been lying defunct. The reason behind the auction is to bring them back into the market and generate an additional resource mobilisation of around Rs 600 crore for the government,” added the sources.
For the purpose of e-auction, the government has substituted the nomenclature of CL2 with CL2A and CL9 with CL9A. The proposed amendment is being made under Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) .
“The 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,” read the notification.
“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,” the draft notification stated.