Karnataka Excise Minister R.B. Thimmapur announced that the state government is preparing to allocate expired liquor shops through an auction process. Speaking at the Vidhana Soudha on September 25, Thimmapur said the draft rules for the auction have been finalized and signed, and the process will commence soon. The minister emphasized that no new licenses will be issued; only existing liquor shops will be allotted via auction. We have made it clear that new licenses will not be given. The auction will be limited to the current licenses, he said.
Thimmapur also indicated that discussions are ongoing regarding reservations in the auction. Whether we should provide reservations will be discussed with the Chief Minister tomorrow. We will decide after careful consideration, he stated. Officials expect the auction process to generate revenue of around Rs 2,000 crore for the state.
Preparations for the auction include setting rules, finalizing procedures, and ensuring transparency. The move aims to streamline liquor shop allocation while maximizing state revenue. The minister highlighted that the auction will benefit both the government and eligible business operators, creating an organized system for license distribution.
The announcement comes amid increasing demand for structured management of liquor shops across Karnataka. By limiting license allocation to existing shops, the government aims to avoid proliferation of new outlets while ensuring competitive participation through the auction system. This initiative is part of the state government’s broader efforts to increase revenue collection from excise while maintaining regulatory oversight. The final decision on reservations, if implemented, is expected to provide opportunities for certain categories of applicants, balancing economic efficiency with social equity.
