Crackdown on illegal liquor sales spurs surge in CL-5 licences in DK

Mangaluru: The crackdown on the sale and serving of defence, Goa, and duty-free liquor in Dakshina Kannada led to a sharp rise in CL-5 licence issuance in 2024. While only 502 CL-5 licences were issued in 2023, the number more than doubled to 1,027 in 2024.
According to excise department officials, the crackdown and strict enforcement began in Oct last year, after party organisers were booked during a national-level conference for serving military canteen and Goa-made liquor at an event in the city. The incident exposed the use of such liquor at private events, resulting in significant revenue loss to the state and violating Karnataka Excise Rules.
"Following the Oct incident, the department has tightened regulations for events in which alcohol is served, especially at open-air venues, making it mandatory to obtain a CL-5 licence. Event organisers are now required to procure liquor from authorised local wine shops. Officials have also started visiting venues to verify if the liquor served has been sourced locally, and organisers must produce purchase bills when asked," said a senior excise official.
These measures have also resulted in an increase in liquor purchases in local wine shops. Each CL-5 licence costs Rs 11,500, of which Rs 10,000 is the licence fee and the rest is cess. However, caterers, liquor shop vendors, and event organisers claim that despite the licensing process being shifted online, it remains cumbersome.
"The process needs to be simpler, and the licence fee should be more affordable. Often, licences are issued at the last minute, just as applicants are preparing for their events. Applicants are also made to visit the excise office multiple times and wait for hours to give an undertaking. This should be avoided," said a liquor shop vendor.
An event organiser added that excise officials visited weddings, banquets, and public gatherings in halls and other public/private venues to check for any violations. "This exercise is causing embarrassment to event organisers as they (officials) come, check openly, and also click pictures," said an event organiser.
TM Srinivas, deputy commissioner of the excise department, Dakshina Kannada, said, "We have been strictly enforcing CL-5 licence rules for all indoor and outdoor events. While there are growing demands to simplify the process, it is up to the government to take a decision on that. Meanwhile, the department to an extent has been able to curb the influx of out-of-state liquor, including Goa-made, military, and duty-free alcohol."