Kerala has halted the processing of all new liquor licences until the state formulates its 2026-27 liquor policy, reinforcing an earlier government directive after a controversy over licences issued at Kochi airport. The latest circular was issued on November 7 by the additional excise commissioner (enforcement), who is currently holding the additional charge of excise commissioner, and circulated to deputy excise commissioners across the state.
The communication directs officials not to take any action connected with granting fresh liquor licences until the new policy is finalised. It refers to two government letters dated August 4 and November 3, which had already instructed the department not to approve new liquor licences before the policy was formulated.
According to the circular reported by the Times News Network, all applications for liquor-trade licences that had been submitted before the new government assumed office in May 2026 were returned. The latest instruction therefore applies both the earlier policy position and the department’s response to the recent controversy.
The directive follows allegations that liquor licences were granted in violation of government instructions. The controversy centred on the approval of licences for three beer and wine parlours and two lounge bars at Kochi airport. The episode brought the functioning of the excise department and the approval process for liquor outlets under scrutiny.
Two excise officials were suspended in connection with the matter, while excise commissioner Seeram Sambasiva Rao was transferred a day before the new circular was issued. Excise Minister M B Rajesh had expressed dissatisfaction with the commissioner’s handling of the issue, including the report submitted on the licences, according to the report.
The Kochi airport episode also highlights the administrative complexity of licensing commercial facilities in transport hubs. Airports combine public infrastructure, private concessionaires and regulated commercial activities, requiring licensing decisions to remain aligned with state policy and departmental instructions. The circular indicates that, for now, the department is prioritising a uniform freeze over case-by-case consideration of pending or new applications.
The order does not set out a separate timeline for the formulation of the 2026-27 liquor policy. Until that policy is framed, deputy excise commissioners have been instructed not to process applications for fresh liquor licences. The department’s next formal milestone will therefore be the release of the new policy and any subsequent directions governing licence applications.
