CL3 or FL2 License

 Retail Liquor Licenses

o Permit Room License
o Club License
o Beer Shoppe License
o Mild Liquor and Wine Bar License
o Wine bar License
o Wine Shoppe License

 Country liquor shops, which are called as CL3
 Foreign liquor shops, which are known as FL2 shops.

 Soon after Independence, the state government placed a complete ban on

alcohol by introducing the Bombay Prohibition Act in 1949

 In 1953, following amendments, procurement of foreign (imported) liquor

was allowed.
 In 1974, after the Raigad hooch tragedy, the government issued licences for
production and distribution of potable liquor
 1,613 IMFL and 3,975 retail (shops) country liquor licences were issued.
Mumbai was issued 492 IMFL and 350 country liquor shop licences
 No new retail licence has been issued since 1974.
 Wardha, Gadchiroli and Chandrapur are the three dry districts

 The Supreme Court in December 2017 has banned the sale of liquor in any
region that is within 500 meters of the State and National Highways. But
allowing opening of liquor shops on highways in places which have a
population of more than 3,000.

 In Municipal Corporations and in Municipalities, liquor shops are banned

within a distance of 50 meters from all religious places and educational
institutions. It should be located at a distance of at least 100 metres in other
local bodies. There should not be any liquor shops located within 100
meters of a hospital.

 Bombay prohibition act 1949 - Section 54 and 56 – Licese is not allowed

for transfer – GR dtd 5/06/2000

 The Government circular dated 13.2.2012, the Government has framed

policy to renew the FL-II licence which have been closed.

MAHARASHTRA COUNTRY LIQUOR RULES 1973

PART IV

LICENCES FOR RETAIL SALE OF COUNTRY LIQUOR

[(2A) Any person desiring to renew a licence shall, thirty days before the date
of expiry of the licence, apply for the renewal thereof. Every such application
shall be accompanied by a challan evidencing payment of a fee.] [ofRs.25].

[(4) No licence under sub-rule(1)shall be granted in respect of any shop

(b) which, if situated in areas within the jurisdiction of any Municipal

Corporation or ‘A’ Class or ‘B’ Class Municipal Council, is within a distance
of fifty metres and, if situated elsewhere, one hundred metres, from any
educational or religious institution ; or

(c) Which is situated within a distance of one hundred metres from any bus
stand, station or depot of the Maharashtra State Road Transport Corporation ;
or

Provided that nothing contained in this sub-rule shall apply in respect of an

existing shop for which the licensee holds a valid licence in Form C. L. III
immediately before the coming into force of the Maharashtra Country Liquor
(Amendment) Rules, 1981.

Explanation.––For the purpose of this sub-rule,––

(i) “educational institution” means any pre-primary, primary or secondary

school managed or recognised by any local authority or the State Government
or the Central Government and any College affiliated to any University
established by law, but does not include any private coaching institution ;

(ii) “religious institution” means an institution for the promotion of any religion
and includes a temple, math, mosque, church, synagogue, agiary or other place
of public religious worship which is managed or owned by a public trust
registered under the Bombay Public Trusts Act, 1950 (Bom. XXIX of 1950)
and includes such other religious institutions as the State Government may by
order specify in this behalf ;

(iii) the distance referred to in clause(b)or(c) of this sub-rule shall be measured

from the mid-point of the entrance of the shop along the nearest path by which
pedestrian ordinarily reaches,––

(a) the mid-point of the nearest gate of the institution if there is a compound
wall and if there is no compound wall, the mid-point of the nearest entrance of
the institution, or

(b) the mid-point of the nearest gate of the bus stand, station or depot of the
Maharashtra State Road Transport Corporation, if there is a compound wall and
if there is no compound wall, the nearest point of the boundary of such bus
stand, station or depot.

(5) The distance between any two shops should not be less than 200 metres.

Comment - The state government has increased the minimum distance

between new liquor shops from 200 mtrs earlier to 1 km. – news in 2019

[25. Prohibition to shift licensed shop to any other place.

(a) a licensed shop shall not be shifted by a retail licensee to any other within a
taluka without prior approval of the Collector ;

(b) a licensed shop shall not be shifted by retail licensee to any place from one
taluka to another taluka of the district without prior approval of the
Commissioner :

Provided that, the number of licensed shops for such shifting shall not exceed
15% Of the total existing licensed shops in any district [excluding Mumbai
City and Mumbai suburban district] which would be inclusive of the licensed
shop already shifted with prior approval of the Government or the
Commissioner before the date of publication of these rules;

[“ Provided further that, any licence shop shall not be shifted within the
Mumbai City and Mumbai suburban District, without prior approval of the
Government. ”

(c) a licensed shop shall not be shifted by retail licensee to any place from on
district to another district without prior approval of the Government

28. Transfer of licence.––The Collector may permit the transfer of a licence

from one name to another or admit or delete the name of any partner after the
licence is granted.

38. Employees.—(1) Subject to the provisions of sub-rule (2), a retail licensee

may employ such employees as he thinks necessary, and shall execute a
NOKARNAMA in favour of every employee so employed in connection with
his business of sale of country liquor in Form C.L. XVIII and shall enter the
names of all such employees in the register in Form C.L. XIX.

(2) A retail licensee shall not employ any of the following persons as his
servants to assist him in his business in any capacity whatsoever, namely :

(i)  women and persons below 21 years of age;

(ii)  persons suffering from any infectious or contagious disease’;

 (iii)  persons who are insane;

(iv)  persons who in the opinion of the Collector have a bad character;

(v)  persons whose NOKARNAMAS or licences have previously been

cancelled;

(vi)  persons convicted of any criminal offence :

40. Country Liquor sales to be on cash only. — All sales of country liquor shall

be made on cash only.

[FORM C. LA. I.

(See rules 23 and 29)Form of application for a licence to sell Country Liquor
by Retail

5. (a)

Whether the applicant or any member of his family (or any of the partners)
holds at present or held at any time in the past (individually or in partnership
with any other person) any excise licence (s) and if so, indicate the particulars
of such licence(s) held and also the period(s) for which he held.

Explanation.—For the purpose of this clause ‘ family ’ means a person and his
spouse (or more than one spouse) and his children solely dependent on him for
their maintenance.

(b) Whether the applicant is holding a Vendor’s Licence for sale of Foreign
Liquor and if so, whether he desires to sell country liquor in sealed bottles at
the same licensed premises.

FORM C. L.,III

1[See rule 24 (1A)]

Licence for the Retail Sale of Country Liquor

17. The licensee, his heirs, legal representatives or assignees shall have no
claim whatsoever to the continuance or renewal of this licence, after the expiry
of the period for which it is granted. It shall be entirely within the discretion of
the Collector to permit or not the assignee of the licensee, in case of sale or
transfer of the heir or legal representatives of the licensee, in the case of death
to have the benefit of the licence for the unexpired portion of the term for
which it is granted.

18. The licence is liable to be suspended or cancelled in accordance with the

provisions of section 54 or 56 of the Bombay Prohibition Act, 1949.

THE BOMBAY FOREIGN LIQUOR RULES, 1953

PART II

Vendor’s Licence for sale of Foreign Liquor

[(2) No licence under sub-rule (1) shall be granted in respect of any shop,

comment - all other conditions are same as country liquor policy.

40. Regulation of business of licensee.—(1) No person shall be recognized as

partner of the holder of a vendor’s licence for the purposes of his licence,
unless the partnership has been declared to the Collector before the licence is
granted and the names of the partners have been entered jointly in the licence
or if the partnership is entered into after the granting of the licence, unless the
Collector agrees on application made to him, to alter the licence and 7[to add
the name or names of the partner or partners in the licence].

[(1A) Except with the previous sanction of the [Collector],no person recognized
as partner under sub-rule (1) shall be allowed to withdraw from the partnership
and to have his name as partner deleted form the licence.]

[(2) (a) Subject to the provisions of clause (b) a holder of a vendor’s licence
shall carry on his business under the licence either personally or by an agent or
servant duly authorised by him in this behalf by a written nokarnama in Form
F.L.XIV, signed by himself and countersigned by a Prohibition and Excise
Officer not lower in rank than a Sub-Inspector :

41. Licensee to abide by provisions of the Act, etc.

(3) The licensee or his successors of assignees shall have no claim what so ever
to the continuance 1* * * of the vendor’s licence after the expiry of the period
for which such licence was granted.
 [FORM F.L./A-IB]

(See rule 24)Form of application for a vendor’s licence for sale of foreign
liquor

5 Where the applicant or any member of his family (or any of the Partners)
holds on the date of this application or held at any time in the past
(individually or in partner- ship with any other person) any excise licence
(s) and if so, indicate the particulars of such licence (s) held and also the
period (s) for which he held it (them).

Explanation.—For the purpose of this clause, “family” means a person or his

spouse (or more than one spouse) and his children solely dependent on him for
their maintenance.

FORM F. L. II.
[See Rules 25]
Vendor’s Licence for sale of Foreign Liquor
3. Except with the permission of the Collector, the licensee shall not sell,
transfer or sub-let his right of selling foreign liquor conferred upon him by this
licence, nor shall he in connection with the said right enter into any agreement
or arrangement which is of the nature of a sub-lease. If any question arises
whether any agreement or arrangement is in the nature of a sub-lease the
decision of the Collector on such question shall be final and binding on the
licensee.

[4. No person shall be recognised as partner of the licensee for the purposes of
his licence, unless the partnership has been declared to the Collector before the
licence is granted and the names of he partners have been entered jointly in the
licence or if the partnership is entered into after the granting of the licence,
unless the Collector agrees on application made to him to after the licence and
to add the name or names of the partner or partners in the licence :

Provided that, no name or names of the partner or partners shall be entered in

the licence by the Collector, without the previous sanction of the State
Government.]

8. The licensee, his heirs, legal representatives or assignees shall have no claim
whatsoever to the continuance or renewal of this licence after the expiry of the
period for which it is granted. It shall be entirely within the discretion of the
Collector to permit or not the assignee of the licensee, in case of sale or transfer
or the heir or legal representa- tive of the licensee, in case of death, to have the
benefit of the licence for the unexpired portion of the term for which it is
granted.
9. This licence may be suspended or cancelled in accordance with the
provisions of section 54 or 56 of the Bombay Prohibition Act, 1949.

BOMBAY PROHIBITION ACT, 1949

Power to cancel or suspend licences and permits.

54. (1) 6[The authority granting any licence, permit, pass or authorization under
this Act may for reasons to be recorded in writing cancel or suspend it,];

(a) if any fee or duty payable by the holder thereof is not duly paid ;(b) if the
purpose for which the licence, permit, pass or authorization was granted ceases
to exist;

(c) in the event of any breach by the holder of such licence, permit, pass or
authorization or by his servant or by any one acting with his express or implied
permission on his behalf of any of the terms or conditions of such licence,
permit, pass or authorization or of any licence, permit, pass or authorization
previously held by the holder;

(d) if the holder thereof or any person in the employ of such holder or any
person acting with his express or implied permission on his behalf is convicted
of any offence under this Act or if the holder of the licence, permit, pass or
authorization is convicted of any cognizable and non-bailable offence or 1[of
any offence under the Dangerous Drugs Act, 1930 or under the Drugs Act,
1940 or under the Bombay Drugs (Control) Act, 1952] or under the Indian
Merchandise Marks Act, 1889, or of any offence punishable under sections 482
to 489 (both inclusive) of the Indian Penal Code, or of any offence punishable
under Article 8 of the Schedule to section 167 of the Sea Customs Act, 1878;
2
[(e) if the licence, permit, pass or authorization has been obtained through
wilful misrepresentation or fraud.]

(2) Where a licence, permit, pass or authorization held by any person is

cancelled, under sub-section (7), the authority aforesaid may cancel any other
licence, permit, or pass or authorization granted or deemed to have been
granted to such person under this Act.
3
[(3) Notwithstanding any thing contained in this section, the State Government
may, for reasons to be recorded in writing, suspend or cancel any licence,
permit, pass or authorization.]

Holder of licence, etc., not entitled to compensation or refund of fee for

cancellation or suspension thereof
55. No holder of a licence, permit, pass or authorization shall be entitled to any
compensation for the cancellation or suspension of the licence, permit, pass or
authorization under section 54 nor to a refund of any fee or deposit made in
respect thereof.

Cancellation for other reasons.

56. (1) Whenever the authority granting a [licence, permit, pass or

authorization ] considers that it should be cancelled for any cause other than
those specified in section 54, he may cancel 5[it] either—

(a) on the expiration of not less than fifteen days’ notice in writing of his
intention to do so; or
6
[(b) Forthwith without notice, recording his reasons in writing for doing so.]
7
[(2) Where a licence, permit, pass or authorization is cancelled under sub-
section (1), a part of the fee for the licence, permit, pass or authorization
proportionate to the unexpired portion of the term thereof and the deposit made
by the holder thereof in respect of such licence, permit, pass or authorization
shall be refunded to him after deducting any amount due from him to the State
Government.]

58. Notwithstanding anything contained in any law for the time being in force
no right, title or interest in any licence, permit, pass or authorization granted
under this Act shall be liable to be sold, transferred or attached in execution of
any process of any civil or any other court.