Mangaluru: The excise department will renotify the e-auction of defunct, lapsed, and unused liquor licences—CL-2A and CL-9A—after the process cleared a legal hurdle. The department first announced an e-auction in November, followed by preparations to conduct online auctions from mid-January. However, the exercise was halted after some licence holders approached the high court seeking restoration of their licences and challenging the move to auction them. With the court proceedings now concluded, the department is set to restart the process.
Legal Hurdle Cleared
Bindushree P, deputy commissioner of the excise department in Dakshina Kannada, stated that a fresh notification for the e-auction will be issued in about two weeks. She explained that some licensees whose permits were listed for auction moved the high court demanding that the licences be returned to them. However, the matter has since been cleared, enabling the department to proceed.
Scope of the Auction
In undivided Dakshina Kannada, 38 unused or lapsed licences were earlier identified and put up for e-auction in December. Of these, 30 are located in Dakshina Kannada and the remaining eight in Udupi. The renewed push for e-auction follows the state government's 2025-26 budget proposal to allocate unused liquor licences through a transparent electronic auction system. The government has projected the measure as a way to improve transparency and support additional resource mobilisation for the state exchequer.
Historical Context
Excise officials noted that Karnataka has not issued new CL-2 and CL-9 licences since 1992, making the upcoming auction a closely watched development for the liquor trade. In November 2025, the state listed around 579 such licences for the proposed e-auction process. Officials said the final number of licences that will go under the hammer could reduce in several districts, including undivided Dakshina Kannada, as some original owners have opted to renew their licences following the court outcome.
Reasons for Licence Lapses
According to the department, many of the licences have remained defunct for years despite repeated reminders to renew them. Officials attributed the lapse to prolonged legal disputes in some cases, the death of licence holders without successors stepping in, and lack of interest among heirs in continuing the liquor business.
About the Author: Kevin Mendonsa has over a decade of experience in writing, reporting, and editing for print media. He is working with The Times of India as a senior correspondent (senior digital content creator) from 2015. He covers education, crime, aviation, lifestyle and other subjects.
