Bar Licensing Information for Delhi

Bar Licensing Information for Delhi (2010)

Opening a bar in Delhi City needs government approval and license permit as per laws. Delhi offers one of the best environments in the country to run modern bars, clubs, serving international brands of liquors. The open door policy of the state government has placed the city far ahead of most states in India by a decade. Resultant in a thriving nightlife and businesses investing into setting up of more fine dining, member clubs, restaurants and nightclubs. While the information provided below related to licensing liquor sales in Delhi is for your reference, you must check with relevant departments on complete detailed procedure prior to initiating your business.

Index L1 License | L2 License | L3 License | L4 License | L5 License | L19 License | Liquor License Pricing

Every year Government of Delhi formulates the Excise Policy and in pursuance to this policy all the liquor Licences are granted. Off Site Consumption Licenses includes L-1, L-2 and L-6. L1 Licenses are granted for the wholesale vending to a Company or a society or a partnership firm or proprietorship firm provided the applicant owns distillery / breweries / manufacturing units. The applications for the grant of License are invited through the public notice published in some of the leading newspapers.  An application for the grant of L-1 License is required to be made in response to the public notice in the prescribed format (Annexure 'I' ) together with its Appendices ('B' and 'C') to the Collector of Excise. The prime job of L-1 Licensee is to supply liquor to the holders of L-2, of  L-2, L-3, L-4, L-5, L-5A, L-19A and L-19 licences in the National Capital Territory of Delhi.

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Grant of L-1 License : The aspirants for the grant of L-1 Licences have to comply with the procedure as laid down in the terms and conditions for  the grant of L-1 Licences which are made available in the Office during the notice period. The applicant has to submit the following documents alongwith the application on the prescribed format : 1. Solvency Certificate from SDM 2. Income Tax Clearance Certificate 3.

No Dues Certificate from Collector (Excise) 4. No Dues Certificate from Sales Tax Officer  5. Declaration of distillery on affidavit regarding sale and minimum ex-distillery prices and distance of distillery from Delhi. 6. CA Certificate for sale and minimum ex-distillery prices. 7. Certificate from Excis e Authority concerned regarding sale figure. 8. Power of Attorney 9. Registered partnership deed/memorandum and Article of association / (Distillery/Winery/Bottling Unit/Brewery). 10. Duly audited annual account and balance sheet of distillery. 11.  Attested copy of the licence for establishment of distillery/winery/bottling unit/brewery. 12.  Attested photocopies of export passes/EVCs verifying the sale figure of the whisky and rum brands for which distillery has applied. 13. Trade Mark Certificate. 14. Usership agreement under Trade & Merchandise Marks Act, 1958. 15.  A certificate from a government authorised laboratory or other reputed private institutions regarding quality of brand. 16.  An affidavit stating that there is nothing adverse or against the applicant in view of the provision of rule 7 of Delhi Intoxicants License and Sale Rule, 1976. 17. Documentary evidence to prove that the product is manufactured from natural alcohol (Double distilled) Extra natural alcohol. The IMFL/beer brands proposed to be sold by applicant on L-1 Licence should be owned by the distillery and in respect of  IMFL brands excluding wine, the applicant should be in possession of trade mark certificate in respect of these brands. However, if the applicant has sold any IMFL brands in Delhi in the year 1993-94 or in previous years, TMC is not required in such cases. In addition, for approval of whisky and rum brands, such brands should have sold a prescribed minimum quantity in All India Market excluding Delhi as indicated in the terms and conditions. Once the licence is approved, the applicant is required to have a Bonded Warehouse approved for storage of liquor. Broadly speaking the applicant immediately on the approval of L1 Licence has to deposit Licence Fee, Brand registration fee and Brand Fee & apply for the following :1. Registration of Brands 2.  Approval of Bonded Warehouse 3.  Approval of Label 4. Fixation of ex-distillery price Back to top

Grant of L-2 Licence : L-2 Licence for retail vend of foreign liquor/beer are granted only to select undertakings of the Delhi government namely DTTDC, DSIDC, DSCSC and DCCWS. Any proposal in respect of premises for opening of a vend would come from above Corporations. As such an individual who wants to give his premises on rent for opening of vend has to approach any of  these corporations, which after looking into suitability of the premises approach the office of the Commissioner of Excise for  grant of L-2 licence in respect of the premises. Broadly any premises to be suitable for opening of liquor vend should meet the following requirement :-

1. The vend premises should be in a pucca building with minimum floor area of 300 sqft. on a floor and located in commercial area. 2. The area MLA should have given his positive opinion in respect of vend premises, as regards opening of the vend. 3. The vend premises are inspected by the site selection committee.The Committee inspects the shop to ascertain that the premises meet the requirement of excise rules as below :

"No liquor shop for consumption off the premises shall be located within a distance of 75 metres from the following, namely:   Any industrial estate and other major construction site.  Major educational institutions  Religious Places  Hospitals and Nursing Homes with more than twenty five beds; and  Colonies of Labourers and harijans If the proposed premises meet the above requirement and found suitable, the grant of L-2 Licence is approved and the concerned Corporation is required to deposit Rs. 1,00,000/- as licence fee before issue of licence. At present shops are in operation all over Delhi. These vends sell IMFL/Beer brands at rates fixed by the Excise Commissioner. Retail sale rate are printed on labels of IMFL and beer bottles. At present, while cheapest IMFL is sold in Delhi for Rs 90/ bottle, high priced scotch brands are available upto Rs. 1520/quart. Lager beer brands are sold in price range of Rs. 25/- to Rs. 40/bottle. Back to top

Grant of L-3/L-5 Licence in Hotels : On

site Consumption Licences :

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-3. This Licence is for service of liquor in a hotel to its residents. These hotels can also seek separate Licence in form L-5 for service of liquor in exclusive bar and in the restaurant in the hotel premises. The service of liquor is restricted to specified premises of bar and restaurant only. The hotel is required to submit application on its letter head accompanied by the following documents : Documentary proof regarding legal status of the hotel i.e. whether it is a company, partnership firm etc.  Whether the hotel is in legal possession of the plot.  Completion certificate in respect of the hotel building.  Trade licence from the Local Authority i.e. MCD/NDMC as the case maybe  Lodging House licence from the Local Authority.  Certificate of registration of eating House licence issued by the DCP (Licencing).  Documentary proof regarding applicant being an Income Tax Assessee and Sales Tax-Assessee.  The applicant is required to submit lay out plan of the hotel, site plan of the licence outlets and the liquor stores. The applicant hotel is required to submit application to the Commissioner of Excise. After scrutiny of the papers submitted and the same having been found to be in accordance with the rules, the hotel premises is inspected by the concerned Excise Officer from the department who submits report to the licence granting authority. The inspection as above is to

determine status of the premises under the Excise rules particularly w.r.t. rule 11 of the Delhi Intoxicants Licence and Sales Rules, 1976 which provides that :"No liquor shop for consumption 'on' the premises shall be located within a distance of 75 metres from the following, namely : Schools, Colleges and other teaching institutions  Religious Places Once the hotel has been found to be suitable for grant of licence, the views of the public/residents are invited on the proposal giving them 7 days time in this regard to file objections before the licensing authority. This is done through pasting of notices and also through public announcement in the area. After no objection has been received, the competent authority proceeds with approval for grant of licence. After approval, the hotel is required to submit fees as prescribed under the rules. On deposit of the same, licence is issued to the hotel. L-5 Licence for exclusive bar/restaurant within the hotel is granted in conjunction with L-3 Licence only and requirements listed above also apply for grant of L-5 Licence.

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Grant of L-4 Licence in Independent Restaurant : L-4 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 as indicated in the application form. The restaurant should be situated in commercial area with adequate parking space. The restaurant has to meet the requirement of rule 11 of Delhi Intoxicants Licence & Sales Rules, 1976 as quoted in case of L-3/L-5 Licences conditions. Rest of the procedure for the grant of Licence is the same as indicated in case of L-3/L-5 Licence. Grant of L-19 Licence

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L-19 Licence is granted for service of liquor/beer in a club. The applicant is required to apply on the letter head of the club to the office of the Commissioner of Excise and the accompanying documents are to be as below: Registration certificate in respect of club.  Documentary proof in support of legal possession of the plot of the club.  List of members of the club.  NOC from the area DCP.  List of the office bearers of the club.  Resolution passed by the Management Committee to start the bar facility in the club and also to meet the liability thereof. Grant

of L-19A License

L-19A license is granted for service of Liquor/Beer at a club/mess whose membership is exclusively for Government Servants and is not run on commercial lines. The documents/procedure required for granting L-19A License is similar to the grant of L19 license. Back to top

Liquor License Pricing L-3 License Fee L-3(Service of IMFL in a hotel to the residents in their rooms)  Hotel having 10 to 25 rooms  Hotel having 26 to 50 rooms

Rs 40,000/Rs 60,000/-

 Hotel having 51 to 100 rooms  Hotel having 101 to 200 rooms  Hotel having 201 to 300 rooms  Hotel having 301 to 400 rooms  Hotel having 401 and above rooms

Rs 1,20,000/Rs 1,80,000/Rs 2,50,000/Rs 4,00,000/Rs 4,50,000/-

L-5 License Fee L-3 (Service of Liquor in a bar or restaurant attached to a hotel)  As per above stated Notification No the rate of L-5 License fee is as under   5 Star and above

Rs 8.50 Lacs P.A. per endorsement

 4 Star

Rs 7.00 Lacs P.A. per endorsement

 3 Star

Rs 6.50 Lacs P.A. per endorsement

 2 Star

Rs 6.00 Lacs P.A. per endorsement

 1 Star

Rs 5.00 Lacs P.A. per endorsement

 Budget Hotel

Rs 4.50 Lacs P.A. per endorsement

L-19 License Fee The following is the fee structure for L-19 License: Club with membership upto 800  Club with membership from 801 to 1500  Club with membership more than 1500

Rs 50,000/- pa Rs 75,000/- pa Rs 1,50,000/- pa

L-19A License Fee The license fee for L-19A license is fixed to Rs 5000/- p.a. irrespective of the number of members of the club. Rest of the procedure with regard to the grant of Licence is the same as indicated in respect of L-3/L-5 Licence.