Unit 2 Bar licenses

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Need for the License

In India, the rules and regulations concerning the sale and consumption of alcohol vary among the states. This is because the subject of alcohol is mentioned in the state list under the Seventh Schedule of the Indian Constitution. The excise department in Delhi administers the liquor head.

The legal age for consumption of alcohol has been specified in every State. Legal age is also the Consumption Age in this context. Under Section 23 of the Delhi Excise Act, 2010 and Delhi Liquor License Rules, 1976, the legal age for alcohol consumption is 25.

Types of Liquor

Two types of liquor are available in the Indian market:

Indian Made Foreign Liquor (IMFL): This kind of liquor refers to the Hard Liquor manufactured within India.

Imported Foreign Liquor (IFL): This kind of liquor manufactures outside India and later imported to India. These liquors are usually expensive than IMFL.

Liquor Law in India

Article 47 of the Indian Constitution briefly states that “The State shall endeavour to bring about a prohibition of the consumption except for the medicinal purpose of intoxicating drinks and of drugs which are injurious to health.” It is noteworthy that five states in the country have been banned from the sale, purchase and consumption of alcohol.

Types of Liquor Licenses

The Delhi Liquor License Rules, 1976 pronounces the types of licenses that serve liquor in the State. Besides this, the act also ensures to supply safe and quality liquor to its consumers.  The categories of licenses used to sell the different variants of liquor are many. A few  of the liquor brands, which requires special trading licenses, are:

• Indian Made Foreign Liquor (IMFL)
• Country liquor
• Denatured & Special Denatured Spirit
• Rectified Spirit
• Wholesale licensee for Indian Made Foreign Liquor

Granting of License

Licenses in this domain are of various kinds. The granting provisions for few of them are below:

Grant of L-1 License

The L-1 license is for wholesale vending to companies; societies; partnership firms or proprietorship firms subject to the condition that the applicant owns distillery/breweries/manufacturing units/bottling plants. Moreover, he/she has to abide by the terms and conditions ordained by the concerned authorities.

Grant of L-6 License

The L-6 license is for retail sales of foreign liquor/beer. Issuance of this license is to choose undertakings of the Delhi government, namely DTTDC, DSIDC, DSCSC and DCCWS.

ON SITE CONSUMPTION LICENCES :

Grant of L-15 and L-16

Department grants licence to hotels which are holding star classification and approval of Department of Tourism, Govt. of India which are considered necessary for grant of Licence in form L-15/L-15F license empowers the hotel for service of Indian Liquor/foreign liquor to the residents in their rooms.  These hotels can also seek separate Licence in form L-16/L-16F for service of Indian Liqour/Foreign liquor in exclusive bar and in the restaurant / bar in the hotel premises. The service of liquor is restricted to specified premises of bar and restaurant only

Grant of L-17/L-18

Licence in Independent Restaurant: L-17 / L-18 Licence is granted to an independent restaurant approved by Department of Tourism, Govt. of India. Such restaurants can apply in the office of the Commissioner of Excise in prescribed form and submit documents

List of Documents for L-17/L-18 Licence
1	Application in the prescribed format.
2.	List of partners/ directors (if the applicant is other than a proprietorship firm)
3.	Partnership deed/ Memorandum of Association
4.	Registered sale deed/ lease deed of the proposed premises
5.	Health Trade Licence issued by the MCD/ NDMC/Local body
6.	Eating House Licence issued by the DCP (Licensing)
7.	Affidavit regarding Fire Safety Measures (if the seating capacity is below 50 seat covers)
8.	NOC from Fire Department (if the seating capacity is more than 50 seat covers)
9.	Approval of Department of Tourism, Govt. of NCT of Delhi/ Govt. of India
10	DVAT registration
11	PAN card
12	Seating plan
13	Affidavit regarding seating capacity under or as provided undee section 13(1) chapter III of Delhi   Excise Act, 2009
14	Declaration of Authorized Representative by the Proprietor/ Partner/ Directors
15	Resolution of Board of Directors
16	List of employees along with their names, address and age
17	Copy of the insurance of the premises against Fire and Natural hazards.

L-30

POSSESSION LIMIT FOR LIQUOR

Liquor being an exciseable article can not be stored by a person like any general commodity. Individual possession limit has therefore been prescribed. Any individual person can possess at his residence alcoholic beverages within the prescribed limit for bonafide consumption by him and by members of his family or his guests. The present possession limit is given below: -

The present possession limit is given below:
(i)Indian liquor and Foreign Liquor(Whisky, Rum, Gin,Vodka)  except Wine, Liqueur, Beer, Cider and Alcopop	9 litres
(ii)Wine, Liqueur, Beer, Cider and Alcopop	18 litres
(iii)Indian liquor or Foreign Liquor	1 litre while entering into Delhi from other states
(iv) Foreign liquor	2 litres while entering into Delhi from other countries

    For Permission of possessing Liquor in excess of Individual Possession Limit one has to apply for L-30 Licence.

 

Temporary Licence for service of liquor in Parties/functions/Conferences
1.	At Residence
	No Licence is required by an individual for serving liquor to his guests and family members at his residence provided the liquor served is within permissible possession limit
2.	For Licensees allowed for onside Consumption Hotels/Clubs/Restaurants)  Permit (P-13)
	P-13 Permit is granted to licenced hotels, restaurants and clubs for service of foreign liquor inside/outside their licensed premises on temporary basis for hosting a function on a specific day.
	Any eligible hotel, restaurant and club can apply for grant of P-13 Permit in the prescribed proforma after depositing Rs 5000/- as permit fee.
	P-10
3.	At any other premises - Licence (P-10)
	P-10 licence can be obtained on payment of Rs. 5,000/- for service of liquor in any party, function, marriage etc. at a specific premises anywhere in Delhi excluding public parks subject to the following conditions: -
	The area is screened off from public view;
	Liquor is served to adults above 25 years of age;
	Liquor is procured from authorized source in Delhi. (the license holder must be having the bill in original issued by retail liquor vend in Delhi from where the liquor has been procured).
	An individual/organization can apply for grant of P-10 licence in the prescribed Performa.  This licence can be obtained from the window at the Excise Department or from the specified liquor vends.

Grant of L-28

The L-28 license is for clubs that have been registered with the registrar of firms/ registrar of cooperative societies to provide services of foreign liquor to its club members. All clubs that agree to the specified terms and conditions can apply for this license.

Grant of L-29

The L-29 license is for clubs or mess that provides liquor or beer exclusively for Government Servants; which are not subject to commercial rates and rules. The application procedure and the required documents for an L-29 license are similar to that of L-28 license.

Link for further study

https://excise.delhi.gov.in/content/licences