• Planning to sell beer and other liquor items online

Hi,
I am planning to start a 24 * 7 online shop to sale and home delivery of liquor starting with Beer, in Bangalore. What are the legal challenges for starting so?
Asked in Business Law from Bangalore, Karnataka
1) Selling beer and alcohol requires a license from the state  excise department and clearance from other state and local authorities 

2) in Bangalore you  have  madhuloka  selling liquor online 

3) you  can tie up with the Authorized retailers for the selling Liquor in the Particular area

4) you can maintain the age limit checks by demanding a scanned copy of a photo identity proof during online registration.
Ajay Sethi
Advocate, Mumbai
28461 Answers
1543 Consultations

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Hi 
You require  the following  for commencing a online shop and home delivery of Beer at Bangalore.

1) Retail Liqour trade license 
    a)Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968
    b) Karnataka Excise (Liquor Transit) Rules, 1985

2) Karnataka Shops and Establishment Act registration(It is mandatory to have a physical store to obtain liquor trade license and hence you need to register under Karnataka Shops and Establishment Act)

3) Labour license if you are employing 10 or more delivery boys. 

4) You should also be aware that in Bangalore, you can sell liquor/ Home deliver liquor only between 8.00a.m till 10.00p.m.

5) At bangalore, there is a firm by name  Madhuloka Liquor Boutique who has physical stores at more than 35 locations within Bangalore and does home delivery from its physical locations. However orders for purchase of liquor are currently being placed only through SMS and not through Online. 


Hope this helps.


Rajgopalan Sripathi
Advocate, Hyderabad
996 Answers
73 Consultations

5.0 on 5.0

As per information available online r Madhuloka has 17 stores across the Bangalore started their online portal to selling the Liquor in particular area by their stores 

2) they may not be interested in partnership with you 

3) toe up with other authorised retailers 
Ajay Sethi
Advocate, Mumbai
28461 Answers
1543 Consultations

5.0 on 5.0

1. For selling liquor, you shall have to avail license from the appropriate authority in addition to other licenses like trade license, I.Tax and sale tax registration etc. as are required for conducting an off line business.

2. You might book the order and receive the payment online but actually all other acts to conclude the business like buying the goods, storing the same in godown/shop, delivering to the customers, submitting sale and income tax etc. will be like any other shop for which you shall have to be governed by the rule of the land.

3. You shall have to follow the closing hours of sale, dry days etc.

4. Your online venture will be for getting the order and payment only and rest of the acts will be like any other offline liqour shops for which there will be no exemption for you for complying with the rule of the trade.
Krishna Kishore Ganguly
Advocate, Kolkata
13923 Answers
309 Consultations

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1. You can book the order at any time since there is no time restriction in booking/receiving order for supply of loquor

2. You won't be allowed to deliver the ordered liquor after the hours (or during dry days, if any, in your City) permitted in your City for delivering/supplying/selling liquor.
Krishna Kishore Ganguly
Advocate, Kolkata
13923 Answers
309 Consultations

5.0 on 5.0

Hi 
Getting partnership with Madhuloka is a wonderful idea and it should be a WIN-WIN situation for both of you as i see lot of synergies between both of you. 

With reference to target 10 p.m to 3.a.m, it is technically possible . 

All we need to ensure that legal issues pertaining to Delivery, Logistics and Supply chain management associated with Beer retail sales/door delivery are SMARTLY  compliant with rules. 

Hope you got the message.
Rajgopalan Sripathi
Advocate, Hyderabad
996 Answers
73 Consultations

5.0 on 5.0

It is not possible given current state of laws. For instance, the Bombay prohibition act prohibits transport, buying, selling, stocking, producing and consuming alcoholic drinks unless done in the manner prescribed by law. For doing any of the above, you need a license. Hence, it is not really possible to either buy or sell alcohol without violating the law. Given the present content of law, one can not even home deliver alcohol - it must be bought from a licensed shop only. Selling liquor online, microbrewery etc. are illegal in India until laws are reformed. It is a different thing that the administration does not apply these archaic laws.

Please note that states have different laws with respect to liquor control and it is a state subject. State governments can reform the laws but there is little political will in this regard.





In Bangalore, Madhuloka sells hard drinks online and even offers home delivery for FREE in Bangalore. It is primarily a brick and mortar liquor store chain with a website.



T Kalaiselvan
Advocate, Vellore
18676 Answers
176 Consultations

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Our business model is to target 10 PM to 3 AM.
Any solution you can think of?
 How about getting the partnership with Madhuloka and provide service 24*7 through our website and mobile app?
Plz suggest

If you are planning to enter into partnership with madhuloka then you have to work out the strategy and discuss your plans with the authority of madhuloka.
T Kalaiselvan
Advocate, Vellore
18676 Answers
176 Consultations

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The alcohol policy is not uniform throughout India as every state has its own policy and taxes governing the sale of liquor. States have different laws with respect to liquor control as it is a state subject. If you are to sell through your own shop then you require a license from the state excise department. The legal drinking age varies from state to state. Some states, such as Gujarat, Manipur and Nagaland do not permit the sale and consumption of alcohol.
whereas some states such as Karnataka do not provide these licenses anymore.

Ashish Davessar
Advocate, Jaipur
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520 Consultations

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