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How to Opening a wine shop in Delhi : Licensing and Registration

Delhi: Liquor is a non toxic liquid which contains Ethyl Alcohol. It is the flavour of the liquor that marks its variety as well as quality. There are mainly three types of liquid produced for consumption in India.

  • Indian Made Foreign Liquor.
  • Beer.
  • Country Made Liquor.

In Indian market, the Indian Made Foreign Liquor is consumed mostly by the middle-class people. The license for selling liquor in Delhi is granted according to the Delhi Liquor License Rules, 1976. It grants different forms of licenses for Indian Made Foreign Liquor, Country lIquor, Denatured and Special Denatured Spirit, Rectified Spirit and some special provisions regarding timing and other issues. The license is granted by the Excise Department and the selling of liquor comes under excise, entertainment and luxury taxes.

How to get License for Wholesale Supply of Indian Liquor in Delhi

  • The Government of National Capital Territory of Delhi grants the license for the wholesale supply of Indian liquor in the form of L-1. The Government formulates the Excise policy and approves the Terms and Conditions for granting L-1 License every year.
  • The Licenses are granted to a company or a society or a partnership firm or a proprietorship firm which have licensed manufacturing units such as distillery, brewery, bottling plant, winery.
  • A Public Notice is made by the Government in all the leading newspapers of the territory regarding application of the grant of license. The notification is also available on the website of the Department.
  • The application is made according to the prescribed format in response to the public notice to the Deputy Commissioner of Excise. The prime job of the L-1 licensee is to supply liquor to all other licensee like L-6, L-7, L-9, etc.
  • There are different documents required which should be submitted along with the application in the described format. The application procedure must comply with the given Terms and Conditions provided in the notice. The Application must be duly signed by the President or Secretary of the Society. There is some processing fee, some certificates and affidavits required for the application.
  • Once the license is approved, the applicant required to have bonded warehouse approved for storage of liquor. Immediately after the approval of the license, the applicant has to deposit Licensee fee, Label Registration fee and bonded warehouse fee and apply for the following:-
    • Registration of Brands.
    • Approval of Bonded Warehouse.
    • Approval of Label.
    • Fixation of ex-distillery price.

License for Retail Shop of Foreign Liquor or Beer

  • The licenses for selling Foreign liquor or beer is granted only to the selected undertakings of the Delhi Government such as Delhi State Industrial and Infrastructure Development  Corporation (DSIIDC), Delhi State Civil Supplies Corporation (DSCSC), Delhi Tourism and Trade Development Corporation (DTTDC).
  • Any proposal for opening a vend for foreign liquor will come from above corporations. Any individual who wants to give his premise on rent for opening such vend will have to approach any of the above authorities. These corporation after looking the suitability of the premise will approach Commissioner of Excise for grant of L-2 license.
  • The premise should fulfil the following requirements in order to be a liquor shop,
    • The vend premises should be in a pucca building with minimum floor area of 400 ft. on a floor and located in commercial area.
    • The area MLA should have given his positive opinion in respect of vend premises, as regards opening of the vend.
    • The vend premises are inspected by the site selection committee comprising DEO the representative of the Corporations and area SDM. 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 institution
        • Religious Places
        • Hospitals and Nursing Homes with more than twenty five beds; and
        • Colonies of Labourers and harijans

If these requirements are fulfilled by the premise and found suitable, the L-2 License is granted and the concerned corporation has to deposit an amount of Rs. 100,000 as license fee to issue a license. There are many such vend operating in Delhi.

Is it Legal to Serve Liquor in Hotels

  • Yes, we can consume alcohol in hotel but the hotel must have L-3 license granted it by the Government of NCT Delhi. The Department of Excise, Entertainment and Luxury Tax grants license only to those hotels which are holding Star classifications and approval of Department of Tourism, Government of India.
  • The license is granted in the form of L-3. It empowers the hotel to serve foreign liquors to the residents in their room.
  • The hotels will have to seek for a separate License if they want to serve liquor in exclusive Bar or Restaurant which is in the premise of the hotel. The License is granted in the form of L-5 and restricted strictly to the premise of bar and restaurant only.
  • The hotel has to submit the application on its letterhead accompanied by following documents.
    • Documentary proof regarding hotel whether it is company, partnership firm, etc.
    • The hotel is in the legal possession of the plot.
    • Complete certificate in respect of the hotel building.
    • Trade License from the local authority i.e., MCD or NDMC as the case may be.
    • Lodging house license for the local authority.
    • Documentary proof regarding applicant is Income-Tax assessee or Sales-Tax assessee.
    • Proof of Department of Tourism, Government of India indicating the project approval and recommendation of the L-3/ L-5 License.
    • No Objection Certificate from Delhi Fire Services.
  • The application is submitted to the Commissioner of Excise and the license is granted after the inspection done by the committee of license granting authority. The minimal requirements like it should not be within the distance of 75 metres of major educational institutions, religious places and hospitals having more than 50 beds.

Can we take Liquor in Restaurants

  • An independent restaurant approved by the Department of Tourism, Government of India can apply for a L-4 License to serve liquor in its restaurant. They have to apply to the Commissioner of Excise in prescribed form along with the documents indicated in the application form.
  • The restaurant should be located in the commercial area with adequate parking space. The restaurant has to meet the requirement of the rule 11 of the Delhi Intoxicants License and Sales Rules,1976 as provided in the terms and conditions.
  • The list of documents required for L-4 License are :-
    • Approval of Department of Tourism, Government of India.
    • Memorandum and Articles of Association or Certification of Incorporation or Partnership Deeds, etc.
    • Proof of lawful possession of premises.
    • Copy of Income Tax clearance.
    • Copy of Sales Tax registration.
    • Trade License issued by MCD or NDMC.
    • Copy of eating house license from DCP.
    • No Objection Certificate from Fire House Department.
    • Other Affidavits as required in the application form.

What is the Stand of the Current Government

  • The Government of National Capital Territory of Delhi has directed the Department of Excise not to grant any new liquor licenses. The Government has stated that the existing number of liquor vendors is quite enough to meet the demand of liquor in the city.
  • The implementation of this decision will not be an easy task as the Government will have to face protests and legal action from those who have already submitted their application for granting of license.
  • The National Restaurant Association of India has totally opposed the decision of the Government and said that it may disturb law and order in the territory.

Do’s and Don’t prescribed by the Excise Department

The Excise Department as part of its policy to provide safe and quality liquor to the consumers in Delhi has formulated some guideline which is followed to regulate and control the sale of liquor in the NCT of Delhi.

  • License is not granted to a person who is not assessed to income tax.
  • The liquor from ary canteen is meant for army personnel only and not for the general public.
  • Always buy liquor from authorized liquor shop.
  • If one is traveling to Delhi from outside state, one should not possess more than one unsealed liquor bottle of 750 ml.
  • Do not service liquor at unlicensed premises and from illegal sources.
  • Do not buy if you are below 25 years of age.
  • No person shall permit or publish in any newspaper/book/leaflet matter soliciting the use of or offering any liquor.
  • No person should be employed at any licensed premises either with or without remuneration any male under the age of 25 years or any female in part of such premises in which liquor or intoxicating drug is consumed by the public.
  • The licensee shall prominently display in front of his shop a signboard showing the retail price of each brand of liquor to be charged by him.
  • Always buy liquor from authorized liquor shop.
  • The consumers while buying liquor from authorized liquor shop must ensure that the bottle is marked “for sale in Delhi only.”

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