Thiruvananthapuram, November 8, 2026 — Kerala’s Excise Department has issued a fresh directive freezing all new liquor licence grants across the state until the 2026-27 liquor policy is formally notified, following a controversy that led to the mid-term transfer of the state’s excise commissioner.
The circular, issued on November 7 by the Additional Excise Commissioner (Enforcement) — who is currently holding additional charge of the top post — has been sent to deputy excise commissioners in all divisions across the state. It reiterates two earlier government letters dated August 4 and November 3, both of which had already instructed officials not to grant fresh licences before the new policy framework is put in place.
The directive comes a day after the abrupt transfer of Excise Commissioner Seeram Sambasiva Rao, who was removed amid controversy over the grant and renewal of liquor licences without the knowledge of the state’s excise minister. Two excise officials were also suspended in connection with the matter.
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According to the department’s fresh communication, all licence applications submitted before the new government assumed office in May 2026 were returned at that time, and the freeze on new approvals has been standing policy since then. The latest circular serves as a formal reminder following what the department appears to treat as a lapse in compliance.
The Kerala Excise Department regulates the sale and distribution of alcohol in a state where the beverage trade is tightly controlled. The state has historically operated through a phased liquor policy revised annually, with the BEVCO (Kerala State Beverages Corporation) controlling retail and licensed outlets managing specific categories such as bars, beer and wine parlours, and hotel bars.
The freeze means no fresh entry points for liquor retail or hospitality-linked consumption will be approved until the government completes its policy review — a timeline that has not been officially announced.
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