Maharashtra to end 50-year freeze on new liquor licences; Ajit Pawar faces conflict of interest allegations: Report

The committee overseeing these changes is headed by Deputy Chief Minister and Excise Minister Ajit Pawar, a move now under fire from opposition leaders and industry experts.

The Maharashtra government is preparing to lift a nearly 50-year-old freeze on issuing new liquor shop licences, a policy dating back to 1974. As per a report in Loksatta, the government plans to roll out 328 new wine shop licences across the state, marking a significant change in excise policy aimed at generating more state revenue.

The decision follows recommendations from a newly formed committee and is seen as a key part of Maharashtra’s broader strategy to boost income through its Excise Department, which already contributes around Rs 43,000 crore annually, making it the state’s fourth-largest revenue source.

Why now?  

With major welfare schemes like the ‘Mukhyamantri Majhi Ladki Bahin’ programme demanding substantial funds, the state is looking to plug revenue gaps. Loksatta reports that if the committee’s suggestions are fully implemented, Maharashtra’s excise revenue could increase by Rs 14,000 crore every year.

Despite the state’s large and growing population, the number of licensed liquor outlets has remained stagnant at 1,713 since the 1970s. By contrast, other Indian states have consistently increased licences by about 3 percent per year, while Maharashtra lags behind with only 1.5 liquor shops per one lakh population, compared to the national average of six.

“This expansion is both reasonable and necessary, given Maharashtra’s population and geography,” Dr Rajgopal Deora, Additional Chief Secretary of the Excise Department, told The Indian Express.

Conflict of interest? Spotlight on Ajit Pawar

However, the decision hasn’t come without controversy. The committee overseeing these changes is headed by Deputy Chief Minister and Excise Minister Ajit Pawar, a move now under fire from opposition leaders and industry experts.

Critics, as cited by The Indian Express, allege a conflict of interest, pointing to Pawar’s proximity to individuals with stakes in the liquor business. A large alcohol manufacturing facility in Baramati, reportedly linked to his close associates, has become a focal point of public and political debate.

New licence model explained

Under the new policy framework, licences can now be leased instead of sold outright. At present, buying an old licence in Maharashtra can cost up to Rs 10 crore in the open market. In contrast, the new licences will require a non-refundable deposit of Rs 1 crore, with an estimated annual fee collection of Rs 35 crore for the state, The Indian Express report added.

This opens the door for more players to enter the market and makes liquor retail more accessible, though concerns about who stands to benefit remain.

A push that may finally succeed?

This isn’t the first time the state has tried to expand its liquor retail network. Earlier attempts were shelved due to stiff opposition from prominent socialist leaders like N D Patil and Mrinal Gore, who opposed increased alcohol access on social grounds.

But unlike in the past, today’s move comes at a time when fiscal pressures and welfare demands are high, and the government appears determined to push through.