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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Arjun Traders wishes to open a hotel-cum-restaurant in Pune with a bar serving liquor. Which of the following correctly describes the approach to the liquor-related compliance?

The hotel must obtain a liquor licence under the Excise law of the relevant State, because regulation of intoxicating liquor is primarily a State matter. Serving only guests does not exempt it, and central commerce or drug licences are not the applicable authority.

  1. AOnly a central licence from the Ministry of Commerce is needed, valid across India
  2. BNo licence is needed if the bar serves only registered guests
  3. CLicence is required under the Excise law of the State concerned, since liquor regulation is mainly a State matterCorrect
  4. DLicence under the Drugs and Cosmetics Act is needed for the bar

Explanation

Intoxicating liquor is a State subject, so the bar must be licensed under the State excise laws and rules. Serving only guests does not remove the need for licence. A central commerce licence or a drug licence is not the relevant authority for liquor.

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