Thiruvananthapuram: Excise Minister M Liju on Wednesday said a department-level investigation was underway into the controversy surrounding the conversion of beer and wine parlours into full-fledged bars, alleging that established procedures were not followed while granting the licences.

Speaking to the media, Liju said a case had been registered in connection with the issue and that the department was examining the circumstances under which the licences were granted. The minister said Deputy Excise Commissioners were authorised to renew licences of bars and wine parlours. However, he clarified that such powers could not be exercised to restore licences that had ceased to exist.

"If a bar remains closed for 10 months, its licence expires. In such circumstances, the establishment has to obtain a fresh licence instead of seeking renewal," he said.

Liju pointed out that one of the establishments involved in the controversy had ceased functioning as a bar in 2014 but was subsequently granted a licence through the renewal process. He termed the procedure incorrect, arguing that a licence that had expired could not be revived merely through renewal. The minister's remarks come amid a controversy over the conversion of three beer and wine parlours in Muvattupuzha, Kochi and Pala into full-fledged bars. The licences were granted by the respective Deputy Excise Commissioners by treating the applications as renewals, without the government's knowledge.

Ernakulam Deputy Excise Commissioner P K Satheesh and Pathanamthitta Deputy Excise Commissioner P L Shibu, who held additional charge of Kottayam, were suspended following the incident.

The controversy centres on a 2017 amendment to the Foreign Liquor Rules introduced by the previous LDF government. The amendment empowered Deputy Excise Commissioners to grant bar licences to eligible hotels that had lost their licences under the 2014 liquor policy. The Oommen Chandy-led UDF government had restricted bar licences to five-star and five-star deluxe hotels in 2014, resulting in the closure of more than 700 bars. Several of these establishments subsequently operated as beer and wine parlours.

Under the amended rules, 410 hotels were granted bar licences during the first LDF government's tenure and another 78 during its second term, taking the total to 488.

Liju has maintained that the restoration of licences after a gap of several years cannot be treated as routine annual renewal. He has also indicated that the government would review the existing licensing framework and examine the licences granted under the previous administration.

The government is preparing a new liquor policy, and has maintained that fresh bar licence decisions would be kept on hold until it is finalised.