Keralam halts new liquor licences until 2026-27 policy is framed amid bar row

The Keralam Excise Department has directed officials not to take any steps to grant new liquor licences until the state government's liquor policy for 2026–27 is formulated.

In a directive issued on Saturday, Excise Commissioner Jayasankar R, instructed Deputy Excise Commissioners across all divisions not to process applications for new liquor licences until further orders.

The directive follows the government's decision to return all applications seeking liquor trade licences that had been submitted to the previous government. Applicants were informed that licences could not be granted under the prevailing circumstances.

The government had also directed that the applications could be resubmitted after the formulation of the 2026–27 liquor policy, subject to the conditions and legal provisions specified in it. The Excise Commissioner reiterated that no new liquor licence should be granted without specific directions from the government.

The directive comes shortly after Excise Commissioner Seeram Sambasiva Rao was removed from the post on Friday amid the controversy over the granting of bar licences. Rao has hit back with a report accusing two senior officials of collecting bribes from bar owners and calling for a vigilance probe into their assets.

The government, meanwhile, is preparing for a wider investigation into alleged irregularities in the department, including decisions taken by Rao himself.

In a report submitted to the Additional Chief Secretary just before relinquishing charge, Rao named Joint Excise Commissioner S Vinod and Alappuzha Deputy Commissioner K R Ajay. He called for their removal from key posts and an investigation into their alleged accumulation of illicit wealth.

Bar owners were willing to pay whatever the officials demanded because the very survival of their establishments was at stake, Rao said, citing credible inputs about corruption by the two officials over several years.

The report also alleged that excise personnel received bribes amounting to as much as 10% of the profits made by bars. Bar owners allegedly recorded these payments in their expense accounts under the head 'happiness'. The practice, however, stopped abruptly after it was exposed by a vigilance probe.

Rao also flagged interference in transfers and postings, saying pressure from senior officials had forced the department to accommodate personnel facing vigilance probes and disciplinary action despite his efforts to keep them out of key positions. Transfers and postings were made without his approval or even his knowledge while he was Excise Commissioner, he said.

The government is now preparing for a comprehensive probe into alleged irregularities in the Excise Department, including benami stakes in bars, interference in licence approvals and decisions taken by Rao during his tenure as commissioner.

Excise Minister M Liju is expected to meet Chief Minister V D Satheesan as part of the move. He has already held discussions with Home Minister Ramesh Chennithala, with a vigilance probe among the options under consideration.

The excise minister is also questioning Rao's handling of bar licence approvals, including his decision to defend officials who granted licences in violation of the government's declared policy. His failure to inform the minister about bribes allegedly paid by bar owners, despite being aware of the payments, is being viewed as a serious lapse.

According to sources, the government has also received confidential inputs that some retired excise officials are acting as agents for bar owners, using their contacts within the department to secure favourable decisions. The conduct and financial dealings of certain serving officials, including those in the Excise Commissioner's office, are also under scrutiny.

"Why was I not informed about the bribery earlier? Now that the report has come to light, it will certainly be investigated. I, too, believe that the Excise Department needs a comprehensive probe," Liju said.