(1) These Rules may be called
the Karnataka Excise Licences (General Conditions) Rules, 1967. (2) They shall extend to all the
areas of State of Karnataka, where the Karnataka Excise Act, 1965, is in force. (3) They shall come into force
at once. These rules shall apply to all licences issued under
the Karnataka Excise Act, 1965 for sale of liquors and every such licence shall
be deemed to include the conditions prescribed by these rules as general
conditions. [1][In these rules unless the
context otherwise requires (1) "Educational
Institution" means a Pre-Primary, Primary or Secondary School owned or
managed or recognised by any local authority, State or Central Government or
any College affiliated to or established or managed by any University
established by law. (2) "Licensee" means a
person to whom a licence to sell Liquor is granted. (3) "Religious
Institution" means a temple, mutt, mosque, church, synagogue, agiary or
other place of public religious worship which is as the case may be,
established or managed or owned by a public trust, the Religious and Charitable
Endowments Commissioner or a Society registered under the Societies
Registration Act or Wakf Board Act. (4) "Shop" means the
licenced premises where liquor is sold]. Licensee shall commence his business on the 1st July
or such date as may be notified by the Excise Commissioner and shall keep open
on every day during such hours as may be fixed by the Excise Commissioner. Explanation Any shop shall be deemed to be open when
in the case of liquor shop so much of stock is always kept in the shop so as to
meet the requirements for a week and in case of toddy shops to the extent of
daily requirements. [2][A licensee may after
information to the concerned Sub-Inspector of Excise, Close the shop on the
following occasions, namely. (a) "on the day of a
marriage in his family; or (b) on the day of the occurrence
of a death or accident in his family.] (1) [3][No licence for sale of
liquor shall be granted to a liquor shop o r premises selected within a
distance of 100 metres from any religious or educational institution or
Hospital or any Office of the State Government or Central Government or Local
Authorities or in a residential locality, where the inhabitants are
predominantly belonging to Scheduled Castes or Scheduled Tribes or within a
distance of 220 metres from the middle of the State Highways or National
Highways. [4][Provided
that where a shop is sanctioned to a village the population of which is less
than two thousand five hundred, such shop shall be located outside the
residential locality of the village.] [5][Explanation.
[6][(I)
For the purpose of this rule "National Highway" or "State
Highway" shall not include such parts o f the National Highway or State
Highway as are situated within the limits of a Municipal Corporation, City or
Town Municipal Council, or such other authority having a population of twenty
thousand or more.] (2) [7][For the purpose of this
rule, the expression "Hospital" means any Government Hospital,
Primary Health Centre or Primary Health For the purpose of this rule the
expression "Office of the State Government or Central Government or Local
Authority" means and includes any State or Central Government Office
headed by Group 'A' or 'B' grade officers and the main Administrative Offices
of Local Bodies like City Corporation, City Municipal Council, Town Municipal
Council, Town Panchayat, Zilla Panchayat, Taluk panchayat and Grama Panchayat
and such other offices of the State Government, Central Government or Local
Authorities as may be specified by the Government from time to time.] [8][(2-A.) Notwithstanding
anything, contained in sub-rules (1) and the Deputy Commissioner of Excise may
with a view to secure, convenience, morality, tranquility, decency or safety of
the public or for any other reason, reject the application for licence to a
liquor shop or premises after recording the reasons therefor.] (3) The Deputy Commissioner of
Excise shall after making such enquiry as he deems fit approve the premises of
liquor shop so selected and thereafter the description of the premises of
liquor shop shall be entered in the Licence to be issued: Provided that the Deputy Commissioner of Excise may,
with the prior approval of the Excise Commissioner and for reasons to be
recorded in writing, permit the location of any shop within a distance of 100
metres, but not less than 50 metres from the institutions, hospital, office or
locality specified in sub-rule (1) within the City Municipality or City
Corporation limits. [9][Provided Aurther that the
Deputy Commissioner of Excise may grant licence to locate any liquor shop in a
premises situated within a distance of 220 metres from the middle of a State
Highway or a National Highway if such premises is located in a predominantly
inhabited area, or extension of a town, village, or area the population of
which is more than two thousand five hundred and where a licence to locate shop
in such premises was granted or was existing during the period commencing from
1st July, 1992 and ending on[10][30th
June, 1994.]] (4) For the purpose of this rule
while measuring the distance specified in this rule, the distance shall be
measured along the nearest path by which the pedestrian ordinarily reaches,
adopting the mid-point of the entrance of the shop and the mid-point of the
nearest gate of the institution, hospital or office if there is a compound wall
and if there is no compound wall, the mid-point of the nearest entrance of the
institution of the office. (5)
The Deputy Commissioner may, by order after giving the licence an
opportunity of being heard, direct such licence to shift the location of any
shop, (a) With a view to secure the
convenience, morality, tranquility, decency or safety of the public or
compliance of the provisions of these rules; or (b) where after the issue of a
licence, any religious institution or educational institution is established or
any office of the State Government or Central Government or Local Authorities
or a Hospital is opened within the limits specified in this rule; to any other
suitable place, within such period, not exceeding three months as he may
specify.] Every licensee shall affix a sign board in a
conspicuous place of the shop showing the nature of the shop, number of licence
and retail price in such language as may be understood by the majority of the
residents in the locality. There shall be only one and the same entrance and
exit for the shop. The licensee shall not mix any material injurious to
the health or mix anything to decrease or increase the strength of the liquor
or its intoxicating power. (1) The licensee shall not
employ any women [11][xxx]. (2) He shall not employ any
person who has been convicted. (3) The licensee shall not
employ, in any capacity, a person who is below the age of 18 years or a person
who is suffering from any contagious disease. (1) No liquor shall be sold or
otherwise given to the following persons, namely. (a) insane persons; (b) persons known or believed to
be drunk; (c)
persons known or suspected to be about to take part in a riot or
disturbance of public peace or any other crime; (d) Excise Officials, Police
Officers, Railway Servants and Motor Bus Chauffeur, on duty, or in uniform; (e)
persons below the age of [12][twenty-one
years.] (2) No quantity of liquor shall
be allowed to be taken out of the shop except to the extent permitted by the rules
under Karnataka Excise Act, 1965. [13][All shops shall remain
closed throughout the second day of October of every year. Explanation. For the purpose of this rule
"throughout the second day of October of every year" means the period
of twenty-four hours [14][In order to comply with the
directions of the Election Commission of India for banning sale or supply of
liquor and intoxicants during election to the House of the people or State
Legislative Assembly the District Magistrate may by notice in writing to the
licensee require that any shop in which any liquor is sold or supplied shall be
closed at such times and for such period as the Election Commission may
consider necessary for conduct of peaceful, fair and -free elections. The
licensee shall not be entitled to any compensation for such closure.] (1) [15][No gambling, dance,
gathering, feast or any kind of entertainment or unlawful act shall be
permitted in such premises. (2) The licensee shall sell
liquor only in the approved shop and shall not sell in such premises any article
other than such article and except to the extent permissible in accordance with
the terms of the licence]. The licensee shall give intimation to the Police
Officers of any thief or person suspected to have committed any offence when
such person is in his shop. The licensee shall not allow any person other than a
member of his family or his authorised servant in the shop during nights after
the time fixed for closing the shop. [16][Explanation. For the
purposes of this rule 'Family' means the wife, or husband, legitimate children
and step children or any other member residing with and wholly dependent on
such licensee.] No liquor shall be sold except for cash. (1) [17]The rent payable to
Government in respect of the shop or shops shall be credited by the licensee in
the Government Taluk or District Treasury wherein the shop or shops is/are situated.
Every month's rents shall be credited on or before the tenth of that month or
the following working day, if the tenth happens to be a General Holiday,
without interest and on or before twenty-fifth or the following working day if
twenty-fifth happens to be a general holiday, with interest at [18][eighteen
per cent] per annum. The interest shall be charged from the eleventh day of
that month on the outstanding amount as long as it remains undischarged
irrespective of the expiry of the lease period or the termination of lease. If
the rent for any month is not credited together with interest before the end of
the month or before the expiry of the time granted under sub-rule (1-A), the
lease shall be determined, and licences shall be cancelled and the right to
vend liquor shall be disposed of afresh.] [19][(1-A) the Deputy
Commissioner may, on' an application made to him in this behalf, if satisfied
for reasons to be recorded in writing that the monthly rent could not be paid
before the end of the month due to circumstances beyond the control of the
licensee, grant time upto and inclusive of the tenth day of the succeeding
month. If such rent together with interest due is not paid within the time so
granted, the Deputy Commissioner may, on an application made to him in this
behalf and after obtaining adequate security in the form of irrevocable bank
guarantee of a Scheduled Bank for an amount equal to the amount of one month's
rent together with interest due for the full month, grant further time till the
end of such succeeding month.] [20][(1-B) The Excise
Commissioner may, by order in writing, grant time for a further period not
exceeding fifteen days, if, on application made to him in this behalf through
the Deputy Commissioner he is satisfied that the monthly rent could not be paid
for reasons beyond the control of the licensee]. [21][(1-C) If the. rent for any
month is not paid on or before the date specified in sub-rule (1) or before the
expiry of the time granted under sub-rule (1-A) or under sub-rule (1-B), the
lease shall be determined and the licence shall be cancelled and the right to
vend liquor shall be disposed afresh in such manner as the State Government may
direct and such disposal shall be at the risk of the defaulter who shall be
liable for all losses that may be sustained by the State Government and the
Deputy Commissioners may forfeit the deposits of the defaulter either in full
or in part with the approval of the excise Commissioner.] (2) The lease shall be
determined and the licence cancelled in the case of tappings of the trees
without payment of duty thereof on behalf of the licensee and tree tax and tree
rent is not remitted immediately, after they are booked for infraction. (3) The Superintendent of Excise
may stop the issue of the allotted liquor or trees for the realisation of rent,
tree tax and tree rent. (4) If the rent, tree tax and
tree rent are not credited even in respect of any one -shop or the group of
shops of the licensee, the lease shall be determined and the licence cancelled
and the group of shops may be put to reaction. (5) The advance rent deposited
by the licensee before the commencement of the lease shall be adjusted towards
the rent of the last month of the lease period. [22][Notwithstanding anything
contained in these rules, the State Government may if it considers necessary so
to do, in the interest of expeditious recovery of arrears of excise revenue,
waive the interest payable under Rule 15, and may grant such instalments, not
exceeding three monthly instalments, as it thinks fit for payment of arrears of
principal amount, wherever the defaulters come forward and make payment of the
outstanding principal amount: Provided that this scheme shall come into operation
with effect from such date as the State Government may by notification specify
in this behalf and expire at the end of 90 days from the date of publication of
such notification.] (1) The licence may be suspended
by the Deputy Commissioner when the licensee makes default in payment of the
rent, tree tax and tree rent of any shop or group of shops. (2) When a licence is suspended,
the Deputy Commissioner may make alternate arrangements for the sale of liquor.
Any loss which the Government may incur in this behalf may be recovered from
the licensee and the Deputy Commissioner may forfeit the deposits e i t h er in
full or in part with the approval of the Excise Commissioner. The right of retail vend of liquor shall not be
transferred by the licensee except with the previous permission of the Deputy
Commissioner. [23][In the event of death of
the licensee or the lessee during the currency of the licence or lease, the
Deputy Commissioner may on an application by the legal heirs of the deceased
with the previous sanction of the Excise Commissioner, transfer the licence or
the lease as the case may be, in their favour.] (1) [24][Notwithstanding anything
contained in Rule 2, licences issued, (i)
for sale of Indian Liquor (other than arrack) or Foreign Liquor or
both, in Form No. CL-1 (Wholesale licence) or CL-2 (retail shop licences) or
CL-7 (Hotel and Boarding House Licences) or CL-9 (Refreshment room (Bar)
Licence under the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules,
1968; or (ii)
for sale of Beer under the Karnataka Excise (Lease of Right of Retail
Vend of Beer) Rules, 1976; The Deputy Commissioner may on an application by the
licensee and subject to payment of transfer fee equivalent to the annual
licence fee specified in Rule 8 of the Karnataka Excise (Sale of Indian and
Foreign Liquors) Rules, 1968 or Rule 5 of the Karnataka Excise (Lease of Right
of Retail Vend of Beer, Rules, 1976, as the case may be, and with the prior
approval of the Excise Commissioner, transfer such licence in favour of any
person named by such licence, if such person is eligible for grant of a licence
under the Karnataka Excise Act, 1965 or the rules made thereunder. (2) Nothing in this rule shall
apply to transfer of licence under Rule 17-A.] [25][The licensed shop shall not
be put in the charge of any person other than the one authorised by the
licensee and in respect of whom a now karnama is issued by the Inspector of
Excise. A Court- fee stamp of rupees two shall be affixed to each nowkarnama. A
certificate from the Health authority to the effect that the persons so
authorised are not suffering from any contagious disease, shall be produced by
the licensee before the Inspector of Excise once in six months. This provision
shall be applicable to employees working in Breweries, Distilleries, Wineries
and also toddy tappers working under toddy licensees. Explanation. For the purpose of this rule Health
authority means "any Registered Medical Practitioner.] Every breach of the conditions of the licence or
provisions of the Karnataka Excise Act, 1965 by any servant of the licensee or
other person shall immediately be reported by the licensee to the Excise
Officer and the licensee shall comply with the orders of the Excise Officer in
this behalf. No licensee shall have, any pecuniary transactions
with the Officers of the Department of Excise, Police or Revenue. (1) The following officers shall
be authorised to inspect any shop (a) Any Excise Officer not below
the rank of Sub-Inspector of Excise; (b) Any Revenue Officer not
below the rank of Tahsildar; (c)
Any Gazetted Officer of the Medical or Health Department. (2) The licensee shall produce
the receptacles kept for measurements of the liquor at the time of Inspection. (3) The licensee shall maintain
an inspection book and other registers as may be prescribed by the Excise
Commissioner and keep a record of all inspection notes and make proper entries.
The Inspection Book shall be delivered to the Excise Officer on the termination
of the lease period. Where a licensee holds more than one licence and he
is convicted for breach of conditions of any one of such licences, the other
licences also may be cancelled. [26][Subject to the restrictions
specified in Rule 5, the Deputy Commissioner may permit a licensee to shift the
location of his shop from one place to another within the limits of a Grama
Panchayat or within the [27][Municipal
Area] or City Municipal Corporation [28][on
payment of a fee equivalent to twenty-five per cent of the licence fee charged
on the licence in respect of such shop.] Where a licence is cancelled during the currency of
the licence, the licensee shall not be entitled to any compensation of any
kind. [1] Rule 3 substituted by GSR
16, dated 6-2-1990, w.e.f. 6-2-1990 [2] Rule 4-A inserted by GSR 99,
dated 30-3-1985, w.e.f. 10-4- 1985 [3] Rule 5 substituted by GSR
127, dated 21-6-1993, w.e.f. 21-6- 1993 [4] Proviso inserted by GSR 24,
dated 6-12-1993, w.e.f. 6-12-1993 [5] Explanation to sub-rule (1)
inserted by GSR 119, dated 19-7- 1994 [6] Explanation to sub-rule (1)
renumbered as Explanation (1) by GSR 156, dated 22-9-1994, w.e.f. 22-9-1994 [7] Explanations (2) and (3)
inserted by GSR 156, dated 22-9-1994, w.e.f. 22-9-1994 [8] Sub-rule (2-A) inserted by
GSR 156, dated 22-9-1994, w.e.f. 22-9-1994 [9] Further proviso inserted by
GSR 119, dated 19-7-1994, w.e.f. 19-7-1994 [10] Read for the words and
figures "30th June, 1992." by GSR 132, dated 12-8-1994 [11] The words "other than
his family member" omitted by GSR 171, dated 6-5-1969, w.e.f. 15-5-1969 [12] Substituted for the figures
and words "18 years" by GSR 223, dated 27-7-1976, .w.e.f. 5-8-1976 [13] Rule 10-A inserted by GSR
282, dated 23-9-1980, w.e.f. 23-9- 1980 [14] Rule 10-B inserted by GSR
58, dated 17-4-1996, w.e.f. 17-4- 1996 [15] Rule 11 substituted by GSR
16, dated 6-2-1990, w.e.f. 6-2- 1990 [16] Explanation to Rule 13 added
by GSR 171, dated 6-5-1969, w.e.f. 15-5-1969 [17] Sub-rule (1) substituted by
GSR 107, dated 18-3-1970, w.e.f. 9- 4-1970 [18] Substituted for the figures
and words "6 1/4 per cent" by GSR 143, dated 25-6-1983, w.e.f.
1-7-1983 [19] Sub-rule (1-A) substituted
by GSR 432, dated 12-12-1969 and shall be and shall always be deemed to have
been substituted w.e.f. 25-11-1969 [20] Sub-rule (1-B) inserted by
GSR 50, dated 12-2-1976, w.e.f. 19- 2-1976 [21] Sub-rule(l-C) inserted by
GSR 250, dated 24-8-1979, w.e.f. 30- 8-1979 [22] Rule 15-A inserted by
Notification No. FD 5 PES 2000, dated 28- 4-2000 and shall be deemed to have
come into force w.e.f. 1-4- 2000 [23] Rule 17-A inserted by GSR
141, dated 5-5-1977, w.e.f. 12-5- 1977 [24] . Rule 17-B inserted by GSR
64, dated 23-5-1995 and shall be deemed to have come into force w.e.f. 1-4-1995 [25] Rule 18 substituted by GSR
359, dated 3-12-1975, w.e.f. 11-12- 1975 [26] Rule 23 substituted by
Notification No. FD 22 PES 93(ii), dated 9-5-1994, w.e.f. 9-5-1994 [27] Substituted for the words
"territorial division of Municipality" by GSR 119, dated 19-7-1994,
w.e.f. 19-7-1994 [28] Inserted by Notification No.
FD 5 PES 2000,dated 28-4-2000 and shall be deemed to have come into force
w.e.f. 1-4-2000KARNATAKA
EXCISE LICENCES (GENERAL CONDITIONS) RULES, 1967
In exercise of the powers conferred by Section 71 of the Karntaka Excise Act,
1965 (Karnataka Act 21 of 1966), the Government of Karnataka hereby makes the
following rules, the draft of the same having been previously published, as
required by sub-section (1) of Section 71 of the said Act, in Notification GSR
No. 434 in Part IV, Section 2C(i) of the Karnataka Gazette, Extraordinary,
dated 30th September, 1967, namely:-