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Kerala halts new liquor licences until 2026-27 policy is framed

The Excise Department has instructed officials to stop processing fresh applications pending the formulation of the state's new liquor policy.

The Kerala Excise Department has ordered officials to stop processing applications for new liquor licences until the state government formulates its 2026–27 liquor policy, according to Onmanorama. Excise Commissioner Jayasankar R issued a directive on Saturday to Deputy Excise Commissioners across all divisions to halt all steps regarding fresh licences until further orders.

This move follows a government decision to return liquor trade licence applications that were submitted to the previous administration. Applicants have been told that licences cannot be issued under current circumstances but may resubmit their requests once the 2026–27 policy is finalised, subject to its legal provisions.

The directive follows the removal of former Excise Commissioner Seeram Sambasiva Rao on Friday amid a controversy involving bar licences. Rao submitted a report to the Additional Chief Secretary before leaving his post, alleging that Joint Excise Commissioner S Vinod and Alappuzha Deputy Commissioner K R Ajay collected bribes from bar owners.

Rao claimed that bar owners recorded these payments in expense accounts as 'happiness' and called for a vigilance probe into the officials' assets. The government is now preparing a wider investigation into alleged irregularities in the department, including benami stakes in bars and decisions made by Rao.

Excise Minister M Liju said that the matter will be investigated and noted that a comprehensive probe into the Excise Department is necessary. Liju is expected to meet Chief Minister V D Satheesan regarding the move, having already held discussions with Home Minister Ramesh Chennithala.

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