For the first time since the Karnataka State Excise Department was formed in 1965, the state government has started auctioning unused and unallotted retail liquor licences through a fully transparent online bidding process. Officials said the new system is expected to bring in nearly ₹1,000 crore as additional revenue for the state.

The decision was announced by Chief Minister Siddaramaiah in the 2025–26 state budget, which he presented on March 7. The move is part of the government’s plan to raise extra funds and improve transparency in the allocation of liquor licences. After making changes to the existing excise rules, the Excise Department officially notified the auction of these licences through an electronic bidding system.

As per the government notification, a total of 569 liquor licences will be allotted through the e-auction process. Out of these, 477 are CL-2A licences, which allow the operation of retail liquor shops. The remaining 92 are CL-9A licences, meant for bars and restaurants serving alcohol.

Bengaluru Urban district will have the highest number of licences available in the auction. A total of 182 licences will be auctioned across eight excise districts within the city, reflecting the high demand for liquor outlets in the capital.

Registration for interested bidders has already begun. The live online bidding will be conducted between January 13 and January 20, 2026. To take part in the auction, bidders must register on the MSTC Limited e-auction platform. They are required to pay a one-time registration fee of ₹1,000 plus GST. In addition, a non-refundable application fee of ₹50,000 must be paid for each licence being applied for.

Officials said that both registration and wallet payment must be completed at least 48 hours before the selected auction slot. This is to ensure smooth participation during the live bidding process.

Several older licence categories have also been reclassified. Unused CL-2 and CL-11C licences, some of which were earlier allotted to the government-owned Mysore Sales International Limited (MSIL) but never became operational, have now been moved under the CL-2A category. Similarly, discontinued CL-9 licences have been reclassified as CL-9A and included in the auction.

The government has also introduced a reservation system in the auction process. A certain percentage of licences has been reserved for Scheduled Castes and Scheduled Tribes to ensure social inclusion. Six per cent has been reserved each for SC-A and SC-B categories, five per cent for SC-C, and seven per cent for Scheduled Tribes. Officials said the new e-auction system is aimed at increasing transparency, preventing misuse, and ensuring fair allocation of liquor licences across the state.