Karnataka To Auction Unused Liquor Licenses, Likely To Earn Rs 1,000 Crore

For the first time since the Karnataka State Excise Department was established in 1965, the state government has begun auctioning unused and unallotted retail liquor licenses through a transparent electronic bidding system. The move is expected to generate close to Rs 1,000 crore in additional revenue for the state.  

Chief Minister Siddaramaiah had proposed the transparent e-auction system in the 2025-26 budget presented on March 7, as part of efforts to mobilise additional resources for the state. Following amendments to the excise rules, the excise department formally notified the allotment of 569 licenses through this process.  

According to a gazette notification, a total of 569 licenses will be allotted through e-auction. Of these, 477 are CL-2A retail liquor shop licenses, while 92 are CL-9A bar and restaurant licenses. Bengaluru urban district will see the highest number of licenses being auctioned, with 182 licenses spread across eight excise districts in the city.

The registration for bidders opened today,  while live e-bidding will take place between January 13 and January 20, 2026. Interested bidders must register on the MSTC Limited e-auction platform by paying a one-time registration fee of Rs 1,000 plus GST, along with a non-refundable application fee of Rs 50,000 for each license. Registration and wallet payment must be completed at least 48 hours before the chosen auction slot.  

Unused CL-2 and CL-11C licenses, some of which were previously allotted to government-owned MSIL but never operationalised, have now been reclassified under the CL-2A category for auction. Similarly, discontinued CL-9 licences have been reclassified as CL-9A and included in the auction pool.

The government has also introduced reservations in the auction process, earmarking six per cent for Scheduled Caste-A, six per cent for Scheduled Caste-B, five per cent for Scheduled Caste-C and seven per cent for Scheduled Tribes in the allotment of CL-2A and CL-9A licenses.