The Uttar Pradesh government has introduced significant changes to its excise policy with the 18th Amendment to the Uttar Pradesh Excise (Settlement of Licenses for Retail Sale of Country Liquor) Rules, 2002. The amendment aims to enhance transparency, efficiency, and fairness in the liquor licensing process by shifting to a digital selection system.
New Digital Process for Liquor License Allocation
Under the revised rules, liquor shop licenses will now be allocated through three methods:
- E-Lottery – A computerized random selection system.
- E-Renewal – For eligible existing license holders.
- E-Tender – Competitive bidding where applicable.
The state government will determine which selection method applies each year, ensuring a structured and fair system. The previous earnest money-based hierarchy system has been discontinued to prevent monopolization and favoritism.
Stricter Regulations and Compliance Requirements
To promote wider participation, no individual can hold more than two liquor shop licenses in the state, except in cases where legal heirs inherit an existing license. Automatic renewal of licenses has also been removed, requiring all applicants to reapply under the prescribed selection process. If a licensee does not opt for renewal or is found ineligible, the license will be reassigned through e-lottery or e-tender.
Ensuring Transparency and Efficiency
The new system is designed to eliminate manual intervention and bring transparency to the license allocation process. All selections will be conducted through a computerized process, following a structured sequence prioritizing country liquor shops, model shops, composite shops, and bhang shops.
Excise Department’s Commitment to Reform
According to the Excise Department, these reforms align with the state government’s vision of modernizing excise operations. The shift towards digital selection will reduce administrative delays, prevent manipulation, and create a more business-friendly environment. The new rules are now in effect, and interested applicants should follow official government notifications to comply with the updated licensing procedures.
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