Andhra Pradesh Excise Grant of Bar and Wine shop License for 5 years 3


License of Selling by Bar and Wine shop Subject to such directions as may be issued by the Government from time to time, new bar licenses may be granted in Urban Local Bodies where there are either no bars or inadequate number of bars by following a population criteria of one bar upto 30,000 population and in its multiples.

License of Selling by Bar and Wine shop

Provided that grant of licenses in Form-2B for star hotels (3-star & above), Micro Breweries and tourism centers (except religious tourism) as notified by the Department of Tourism of the Central Government or by the State Government in the Tourism policy and in the tourism resorts registered with the Tourism Department shall be on filing prescribed applications and subject to fulfillment of eligibility conditions, irrespective of population of the place.

Provided further that all the existing licensees who are entitled for grant of licenses under Rule 6 shall file application online in Form-E1 for enrollment duly paying the non-refundable application fee, non-refundable registration charge and license fee as prescribed under these Rules and submit application form in Form-1B along with Form-BR1(system generated) on or before the last date and time notified by the license issuing authority for registration and grant of license.

Provided also that in case the existing licensee who is entitled for grant of license under Rule 6 fails to apply on or before the last date and time notified or a bar licence other than that of star hotel (3- Star and above), Micro Brewery or Tourism Center is cancelled, such bar may be notified duly calling for applications for grant of fresh license.

8. Procedure for selection of applicants for grant of license in Form-2B:-
1) Where it is proposed to grant license to sell Indian Made Foreign Liquor & Foreign Liquor by bar in Form-2B, the license issuing authority may call for applications for grant of licenses in the Nagar Panchayats, Municipalities including the belt areas of 2 KM from the periphery of such Municipalities and Municipal Corporations including the belt area of 5 KM from the periphery of such Municipal Corporations, as approved by the Commissioner of Prohibition & Excise by issuing a notification in the district gazette at least 5 days in advance of the date of selection containing the following particulars, namely:-

(a) Serial number and name of the Nagar Panchayat / Municipality / Municipal Corporation in which the bar will be established.

(b) The place of selection with time and date.

(c) The Last date, time and place for receipt of applications.

(d) The period of license, non-refundable application fee, non-refundable registration charge and license fee.

(e) Procedure of online enrolment by the applicant(s) for registration.

(f) Any other relevant matter.

2) Submission of applications for enrolment for registration and selection for grant of license:-

(a) (i) The applicant shall enroll through online for registration with the license issuing authority by filling application in Form-E1 for participating in the selection process of Bar.

(ii) After enrolment as laid down in the sub-Rule 2(a)(i), the applicant shall obtain Form-1B, and Entry Pass in Form-EB1, both system-generated, for each bar separately for onward submission to the license issuing authority as laid down under these Rules.
(b) The application in Form-1B shall be submitted by the applicant for each bar separately in an envelope addressed to the license issuing authority on or before the last date and time notified for receipt of such applications along with the following:
(i) A Challan for Rs.2,00,000/- towards non-refundable application fee.

(ii) Two recent passport size photographs.

(iii) Self attested Photostat copies of PAN Card & Aadhar Card

(iv) Two years Income Tax/VAT returns.

(v) Demand Draft for an amount of Rs.3,00,000/- (Rupees Three lakhs only) towards earnest money deposit drawn in favour of the License issuing Authority to be adjusted against the licence fee/non-refundable registration charge payable if Bar licence is granted on selection of the applicant or returned if the same is not granted or refused due to any reason.

(vi) Copy of plan of the proposed premises.

(vii) If the proposed premises is rented, copy of consent letter of the owner for establishment of bar.

(viii) A copy of Trade License containing the details of hotel/restaurant etc., licensed by the competent local authority to serve food.

(3) Applications not accompanied by the relevant documents/ enclosures specified in sub-Rule (2) shall be forthwith rejected by the license issuing authority with the approval of the District Collector.

(4) Every application shall be taken into consideration if it is presented on or before the prescribed date and time and no application shall be received after the prescribed date and time notified by the license issuing authority.

(5) Entry Pass in Form-EB1 shall be issued to the applicant if the application is accepted by the license issuing authority and no person other than the officers on duty and persons duly authorized by the selection authority shall enter the place of selection without presenting Entry Pass.

(6) The selection process shall be taken up at the place, time and date notified in the presence of the applicants who are available at the time of selection.

Provided that if the District Collector considers that the selection process should be postponed to a future date/time or shifted to a different venue for any reason, he may do so by recording the reasons there for and after notifying the same to the applicants.

(7) The selection process shall be taken up bar-wise as notified in the District Gazette.

Provided that the Commissioner of Prohibition & Excise may for reason(s) to be recorded in writing, withdraw any bar from the selection process before the same is commenced.

(8) At the commencement of the selection process, the selection authority shall first announce the number and names of applicants who have filed applications for that particular bar.

(9) Where there is only one application for the bar notified, if the license issuing authority is satisfied that the applicant is eligible for grant of license, he shall declare the applicant as selected for grant of license.

(10) (a) Where there are two or more applications for a bar notified, the selection among the eligible applicants for grant of license shall be by drawl of LOT by the District Collector, who shall be the selection authority to conduct the process of selection of applicants for grant of license.

(b) The drawl of LOT as provided in sub-Rule (a) may be either manual or through a computer as may be decided by the Commissioner of Prohibition. & Excise.

(11) The selected applicant shall follow the procedure prescribed under these Rules to obtain the license.

(12) In case the selected applicant fails to obtain the license within (45) days of such selection, the earnest money deposit submitted along with the application in the form of demand draft shall stand forfeited to the Government.

9. Application and procedure for grant of Licence:-
(1) A person intending to establish Bar in Form-2B in star hotel (3-star and above), tourism center (other than religious tourism place) and Micro Brewery or in Form-2B(P), as the case may be, may submit an application in Form-1A to the Commissioner of Prohibition and Excise enclosing a challan of Rs.2,00,000/- towards non-refundable application fee to get prior clearance.

(2) The Commissioner having due regard to requirement and other factors as he deems fit and subject to the directions of the Government as may be issued from time to time in this regard, may grant prior clearance in Form-2A to such of the applicants covered under sub-rule (1).

Provided that it shall not be necessary for the existing licensee who is entitled for grant of license under Rule 6 and the applicant selected for grant of license in Form-2B under Rule 8 to obtain prior clearance in Form-2A.
Provided further that the existing licensee who is entitled for grant of license under Rule 6 shall remit Rs.2,00,000/- towards non-refundable application fee and enclose the challan to the application form in Form-1B.
Provided also that the selection or grant of prior clearance shall not confer any right on the applicant for grant of licence. The holder shall not claim for any compensation or loss in case the licence is not granted.
(3) (a) The holder of prior clearance, the existing licensee who is entitled for grant of license under Rule 6 or the applicant selected for grant of license under Rule 8, as the case may be, may apply in Form-1B for grant of licence in the prescribed form to the Prohibition and Excise Superintendent concerned where the applicant’s premises is to be licensed.

(b) No application in Form-1B shall be submitted by the applicant unless he registers with the Prohibition & Excise Superintendent concerned and obtains Registration Certificate in Form-BR1.

(4) Registration Certificate in Form-BR1 shall be issued to the applicant on payment of non-refundable registration charge prescribed under Rule 14.

(5) The Prohibition and Excise Superintendent, after making such enquiry as he may think necessary, to ascertain the bona fides of the applicant and verifying the particulars furnished in the application should examine the suitability of the premises for granting Bar and forward the same to the Deputy Commissioner of Prohibition and Excise along with his report.

(6) The Deputy Commissioner, after causing such enquiry as he may deem fit, may grant the licence.

(7) The applicant before issue of licence shall execute a counterpart agreement in Form-4B, on the stamp paper of requisite value as per the provisions of the Indian Stamp Act, 1899.

10. Persons not eligible for grant of licence:-

The following persons are not eligible for grant of licences:-

(i) persons below the age of twenty one years,

(ii) persons who are undischarged insolvents or who have been convicted of offences under the provisions of the Act or the Customs Act, 1962 or Narcotics Drugs and Psychotropic Substances Act, 1985 (Central Act 61 of 1985) or convicted under Andhra Pradesh intoxicating liquors (Prohibition of Advertisements) Act, 1978 or convicted of non-bailable offences or are habitual offenders.

(iii) Persons suffering from leprosy or other contagious disease only in cases where such persons have to handle the stocks of liquor or beer in premises or elsewhere personally,

(iv) Defaulters in the payment of excise revenue to the Government.
11. Restrictions on the grant of Licence:-

(1) A licence in Form-2B or 2B(P) shall not be granted.

(i) Unless the premises has:-

(a) A minimum plinth area of 200 Sq. Meters.

Provided that the minimum plinth area for Beach Shack shall be 100 Sq. Mts.

(b) Sanitary equipment like wash basins, washrooms separately for ladies and gents.
(c) Facility of cooking and serving complete meals of good quality to the consumers as licensed by local authority by providing a kitchen with a minimum plinth area of 15 Sq.Mtrs.
(d) Air conditioning or Air cooling facility in consumption rooms and halls of licensed premises.
(e) Adequate vehicle parking arrangement.

(ii) Unless the premises is situated within 100 meters from educational institutions recognized by the Government, places of public worship such as Temples registered with the Endowments Department, Mosques registered with the Wakf Board, Churches, established and managed by a registered Christian organization or society and Hospitals.

(iii) Within 500 meters of predominantly residential area, but licenses may be granted if the proposed premises is located on a main road used for shopping purposes.

Provided that the restrictions in clauses (i) to (iii) shall not be applicable to Star Hotels (3 Star and above) certified by the Tourism Department of the Central Government.

(iv) Within a distance of 500 Mts. of the outer edge of the national or state highway or of a service lane along the highway and the premises shall not be either visible or directly accessible from a national or state highway.

Provided that in case of areas comprised in local bodies with a population of 20,000 or less, the distance shall be 220 Mts.
(v) Unless the applicant produces Trade License from the local authority concerned and relevant License under the Food Safety and Standards Act-2006 issued by competent authority.
(vi) Unless the applicant produces lease deed on a Stamp paper for the proposed licensed premises from the owner of the premises.

Explanation:- For the purpose of this rule

“Place of public worship” means a temple registered with the Endowment Department, Mosque registered with Wakf Board and Church “established and managed by a registered Christian organization / society” and includes such other religious institutions, as the State Government may by order specify in this behalf;

(a) “Educational Institutions” means any Primary school, Middle School and High School recognized by the State Government or Central Government, Junior College or any College affiliated to any University established by law:

(b) “High Way” means National Highway or State Highway as notified by the competent authority.

(c) “Hospital” means any hospital which is managed or owned by a local authority, State Government or Central Government or any private hospital and has a provision of more than thirty (30) beds.
The distances referred to above shall be measured from the mid-point of the entrance of the proposed Bar premises along with the nearest path by which pedestrian ordinarily reaches the outer edge of the national / state highway or service lane, mid-point of the nearest gate of the hospital, institution or place of public worship, if there is a compound wall and if there is no compound wall to the mid-point of the nearest entrance of the Institution/ place of public worship, or the entrance of the first house of the predominantly residential area.

12. Failure to comply with directions entails rejection of application:-

Failure to remit fees or to rectify the defects or to comply with other directions relating to the premises, within the time allowed shall entail rejection of an application.
13. Period of the Licence and commencement of business:-

Every license shall be valid for five years commencing from 1st July of the first year ending with 30th June of the fifth year, subject to payment of licence fee and non-refundable registration charge as prescribed.
Provided that the licence issued on or after the 1st July shall be valid up to the 30th June of the fifth year.
Provided further that a licence granted for a part of the licence period shall be valid for such period as may be specified by the licensing authority.
Provided also that every licensee shall commence his business from 1st July, or such other date as may be specified in the licence and shall keep the Bar open every day during the hours fixed till the expiry of the licence period with sufficient stock of Indian Made Foreign Liquor & Foreign Liquor unless the closure of the Bar is ordered by the competent authority for the period specified.
Before issue of a licence, the licensee shall execute a counterpart agreement in Form-4B on the stamp paper of requisite value as per the provisions of the Indian Stamp Act, 1899.
14. Non-refundable registration charge and License Fee:-

(1) The mode of levying non-refundable registration charge and license fee shall be on the basis of population.

(2) The annual non-refundable registration charge and license fee for each of the licenses shall be as follows :

Sl. No.
Population Non-refundable registration charge slab in Rs.

License fee slab                            in Rs.
1 Upto                                  50,000 8,00,000 2,00,000
2 50,001 to 5,00,000              18,00,000 2,00,000
3 5,00,001 and above             28,00,000 2,00,000

Provided that the annual non-refundable registration charge and the license fee for each of the licenses shall be enhanced @10% every year.

Provided further that the annual non-refundable registration charge and the license fee of a bar situated in the 5 KM belt from the periphery of a Municipal Corporation and in the 2 KM belt from the periphery of a Municipality, measured in a straight line on the horizontal plane, shall be at the rates of annual non-refundable registration charge and the license fee of bar situated within the limits of such Municipal Corporation and Municipality respectively.

Provided also that where the bar falls within the belt area of a Municipal Corporation as well as a Municipality, the non-refundable registration charge and license fee payable shall be the non-refundable registration charge and license fee applicable to the Bar situated in the belt area of the Municipal Corporation.

(3) The applicant shall pay the non-refundable registration charge and license fee for the five years’ license period before commencement of the license period either in one lump sum or in five equal installments at his option.

(4) (a) Where the applicant opts to pay the non-refundable registration charge and license fee in installments, he/she shall pay a sum equal to the annual non-refundable registration charge and license fee before the commencement of the license period.

(b) The licensee shall remit the 2nd installment sum equal to the annual non-refundable registration charge and license fee on or before 20th June of the first year of the license period.

(c) The licensee shall remit the 3rd installment sum equal to the annual non-refundable registration charge and license fee on or before 20th June of the second year of the license period.

(d) The licensee shall remit the 4th installment sum equal to the annual non-refundable registration charge and license fee on or before 20th June of the third year of the license period.

(e) The licensee shall remit the 5th installment sum equal to the annual non-refundable registration charge and license fee on or before 20th June of the fourth year of the license period.

(5) The annual non-refundable registration charge and licence fee in respect of licenses granted during the currency of the licence period shall be on the following scales:-

(I) Licence granted between 1st July and 30th September: Full annual non-refundable registration charge and licence fee for each of the five years.

(II) Licence granted between 1st October and 31st December: 3/4 of the annual non-refundable registration charge and 3/4 of the annual licence fee for the first year and full annual non-refundable registration charge and license fee for each of the remaining four years.

(III) Licence granted between 1st January and 31st March: 1/2 of the annual non-refundable registration charge and 1/2 of the annual licence fee for the first year and full annual non-refundable registration charge and license fee for each of the remaining four years.

(IV) Licence granted between 1st April and 30th June: 1/4 of the annual non-refundable registration charge and 1/4 of the annual licence fee for the first year and full annual non -refundable registration charge and license fee for each of the four years.

Provided that if the license is granted after 1st july, the non-refundable registration charge and license fee as applicable for the first year shall be remitted before the issue of the license and the 2nd, 3rd, 4th, and 5th installments of non-refundable registration charge and license fee shall be remitted as laid down under sub-rule (4) (b) (c) (d) and (e).

(6) In the event of failure to remit the non-refundable registration charge and license fee installment on or before the due date, the licence shall stand cancelled automatically and all the deposits shall stand forfeited to the Government.

(7) If a licence is surrendered in the middle of the licence period, the deposits and the non-refundable registration charge and licence fee paid shall be forfeited to the Government.

(8) In case the licence is refused, the license fee and registration charge paid shall be refunded.

(9) The non-refundable registration charge and license fee shall be remitted into the concerned Government Treasury in the District in which the licensed premises is located.

(10) Where the licence stands cancelled or suspended for any violation of the rules and the conditions of licence, the Deputy Commissioner may order forfeiture of the deposit furnished by the licensee either in full or in part depending upon the nature of violation and such forfeited deposit shall be made good by the licensee within the time fixed by the Deputy Commissioner. In case the licensee fails to make good to the extent of forfeited deposit within the time fixed the licence automatically stands cancelled.


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