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Mumbai Liquor License

Mumbai-Liquor-License

Liquor License in Mumbai

A liquor license, as the name suggests, is a permit requires to sell alcoholic beverages for consumption. In Mumbai, alcoholic beverages are sold in several restaurants, bars and clubs. According to the Bombay Prohibition Act 1949, a valid license should be possessed to purchase, possess, transport and consume liquor; violating which is considered to be an offence. In this article, we look at the procedure for obtaining the Mumbai liquor license.

Need for the License

Places like bars and restaurants that allow the consumers to consume the beverage on its premises are required to obtain a liquor license. On the other hand, obtain an off-licence to sell liquor in liquor stores, grocery stores and drug stores.

Types of Licenses

Liquor licenses are broadly classified into two types.

Wholesale Liquor License

This license refers to an individual carrying a license in Form C.I.W II, is eligible to sell duty paid country liquor in wholesale. Wholesale Liquor License is further classified into:

  • Wholesale license for wine, which is used as trade and import license to remove a custom frontier.
  • License to approve storage and wholesale of duty paid country to retail shops.
  • License for the wholesale of foreign liquor.

Part-III of the Bombay Prohibition Act, 1949 mentions the procedure to obtain a Wholesale License. It states that an individual in need of the license has to make an application to the Commissioner through the Superintendent of the district where the individual fancies to establish a warehouse to stock the country liquor. The superintendent verifies the details mentioned in the application and then ensures the buildings or rooms of the warehouse used for the sale of liquor conform with the specifications of rule 15. In addition to this, the act also mentions the requirements of the warehouse premises.

Retail Liquor License

This license refers to an individual carrying a license in Form C.L.III or C.L./F.L/. Retail Liquor License is further classified into:

  • Permit Room License
  • Club License
  • Beer Shoppe License
  • Mild Liquor and Wine Bar License
  • Wine bar License
  • Wine Shoppe License

Issue of License

The Government has implemented certain sections concerning the grant of the liquor license to the concerned licensee subject to compliance with these requirements.

Section 34: Vendor’s Licenses

The applicant can obtain a vendor license if all the requirements are as per the Government norms or through a written order that officially permits to sell foreign liquor by a vendor. This section also facilitates the granting of an entrepreneurial license under the following conditions:

  • The stock of foreign liquor from the licensee (except for disposal at the store) must be maintained at 12 government-approved godowns.
  • The liquor owner has to pay all leases, costs and other expenses connected with the warehouse and surveillance.

Section 35: Hotel Licenses

The applicant can obtain a Hotel license if all the requirements are per the Government norms or through a written order that officially permits the managers of a hotel to sell foreign liquor. The Government, before granting the license, ensures that there are adequate staff members in the hotel to hold the permits.

The applicant can opt for hotel licenses under the following contingencies.

  • Liquor is sold to every permit holders living or boarding the hotel.
  • Consumption of liquor sales is not allowed in any hotel room to which the public has access.
  • The holders of hotel license are obligated to remit the expenses of any of the officers of the excise institution (if any) for the grant and control of permits on the premises or the supervision of the issue and consumption of foreign liquor within its confines.

Renewal of License

The Grade 1 restaurants of Mumbai can obtain a Bar License. The permitting room license for ‘ON-Consumption’ and ‘FL II licenses’ have been granted to shops as an endorsement of the sale of sealed bottles for ‘OFF-Consumption’. However, these licenses are valid for one year, after which it has to be renewed. To renew a license, the license owner has to apply for renewal before thirty days of the expiry of renewal. A fee of Rs. 25 requires for the application form, challan and the renewal fee.

Documents Required

At the time of renewing a license, submit the following documents:

  • A court fee stamp of Rs. 1.
  • Original License.
  • Application fee challan of Rs. 25.
  • License fee challan.
  • Income tax/sales tax clearance certificate or affidavit.
  • Copy of the Partnership Deed.
  • Ownership/Tenancy of the premises.

Application Procedure

Here are the steps to apply for a liquor license in Mumbai.

Step 1: Obtain a court stamp of Rs. 10

The applicant has to obtain a court fee stamp of Rs. 10 court stamp from any court or the Asiatic Town Hall near the collector’s office.

Step 2: Approach the Permit issuing office

The applicant has to visit the Old Customs House, also as Collectors Office in Fort area in South Mumbai. This facility is also available in the regional excise offices in Malvani (Malad West), Andheri, Bandra and Chembur.

Step 3: Receive the application form.

On approaching the office, the applicant can receive the application form from the concerned authorities. The form is available for free of cost.

 Step 4: Enter the Details

The applicant has to enter the following details in the application form.

  • Name of the applicant
  • Date of Birth
  • Age
  • Occupation
  • Residential Address

Step 5: Affix the stamp

After entering all the details in the application form, the applicant has to affix the court fee stamp on the application form.

Step 6: Submit the Application 

The applicant has to submit the application form along with the photographs, photo ID and address proof. While applying, the applicant has to pay the appropriate fee depending on the type of license.

Documents Required

To obtain a Liquor License, the applicant has to submit the following documents along with the application:

  • An application that is addressed to the Excise & Taxation Officer.
  • A treasury receipt of Rs. 2000 (for lifetime permits) and a treasury receipt of Rs. 200 (for one year permit) under the head 039-State Excise.
  • Age Proof.
  • Address Proof.
  • Aadhaar Card.

Fee Structure

The fee structure to obtain a Liquor License is herewith:

  • A fee of Rs. 15,000 requires to obtain a temporary club licence or party permits for bigger parties (above 100 people) and a fee of Rs. 10,000 for smaller parties (below 100 people).
  • According to the excise department rules, an FL-4 license is mandatory to conduct a private liquor party in a  flat or a resort that costs a sum of Rs. 13,000. All consumers should possess this license, otherwise which the party organizer may be penalized for illegal possession of liquor.
  •  The license fee for permit rooms is Rs. 5,44,000 and that of beer shops is Rs.1,50,000.

Digitization of the Licensing Process

The State excise department has developed an online portal and a mobile application to grant liquor consumption permits. The individual can obtain the permit by syncing the Aadhaar Card number to the website or the app. On synchronizing the number, a obtain a digital permit within a few minutes of the application, and the status of the application can be checked online. A one-day permit to consume foreign liquor costs Rs. 5, whereas it costs Rs.2 for a country liquor; the annual permit costs Rs. 100 and a lifetime permit Rs. 1,000.

Ban of Liquor Shops

The Supreme Court in December 2017 has banned the sale of liquor in any region that is within 500 meters of the State and National Highways. In Municipal Corporations and Municipalities, the Government bans liquor shops within a distance of 50 meters from all religious places and educational institutions. It should be located at a distance of at least 100 metres in other local bodies. There should not be any liquor shops located within 100 meters of a hospital.

Penalty

If an individual possesses, consumes or transports alcohol in Mumbai without a valid license, he/she may have to either pay a fine of Rs. 50,000 or maybe incarcerated for five years.