Kerala Freezes Fresh Bar, Liquor Licences Until New 2026-27 Policy Is Finalised

Kerala has put the processing of fresh liquor licences on hold until the state government finalises its new liquor policy for 2026-27, following a controversy over the grant of bar and lounge licences without the government’s approval.

In a communication issued

on November 7, the Excise Department directed Deputy Excise Commissioners across the state not to initiate or process applications for new liquor licences until further orders.

The instruction applies to fresh licences for liquor-related businesses, including bars and other establishments serving alcoholic beverages.

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The department’s latest directive follows earlier government instructions issued on August 4 and November 3. After the United Democratic Front (UDF) government assumed office in May, applications submitted under the previous administration were returned, with applicants asked to apply again after the new liquor policy is announced. The government is expected to finalise the policy by the end of November.

The decision comes amid growing controversy over licences granted to three beer and wine parlours and two lounge bars at Kochi airport under the previous liquor policy.

Excise Minister M Liju had expressed dissatisfaction over the approvals, stating that they were granted without the government’s knowledge. Two Deputy Excise Commissioners were suspended over the issue.

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The controversy also led to the transfer of Excise Commissioner Seeram Sambasiva Rao on November 6.

Additional Excise Commissioner R Jayasankar was given the additional charge of the post.

In a subsequent development, the Excise Department revoked the decision to grant an FL-7 lounge bar licence at Cochin International Airport Limited (CIAL).

However, two other lounge bar licences issued earlier remain in force, as the department reportedly received legal advice that cancelling them could face challenges in court.

The issue has also taken a serious turn with allegations of corruption within the department. Before his transfer, Rao sought a Vigilance probe against two senior excise officials, alleging bribery and irregularities in licence processing.

The allegations are yet to be established, and a probe is being considered.

Separately, Excise Minister M Liju has directed bars to verify the age of customers who appear to be below 23 by checking Aadhaar cards or other valid age-proof documents before serving alcohol.

The minister has warned of action against establishments that serve liquor to underage customers.

The licence freeze is expected to remain in place until the new liquor policy is formulated, with the government seeking to bring greater clarity to the process of issuing liquor licences in the state.