Last updated: January 29th, 2020 3:37 PM

Bar License in Tamilnadu and Chennai

Urbanisation, rising incomes and relaxation of social norms has lead to more  and more youngsters spending money and alcoholic beverages at bars. Bars have also evolved to offer its patron a wide range of entertainment and food options in addition to alcoholic beverages. Thus, the demand for bars have steadily grown and the running of a bar has become a very lucrative business in Chennai and rest of Tamilnadu. However, to operate a bar in Tamilnadu or Chennai, bar license is needed from the Tamilnadu Government. In this article, we look at the procedure for obtaining bar license in Tamilnadu and Chennai.

Bar License Rules in Tamilnadu

In Tamilnadu, the sale or liquor and alcohol is governed by the Tamilnadu Prohibition Act, 1937. By the powers conferred by the Tamilnadu Prohibition Act, 1937, the sale of liquor and the grant of bar license is presently regulated by the Tamilnadu Liquor (License and Permit) Rules, 1981.

Types of Bar License in Tamilnadu

Different types of bar license are applicable in Tamilnadu based on the nature of applicant and the end-use of alcohol. The types of bar license in Tamilnadu are:

1. The licence for the grant of privilege of retail sale of bottled Indian made foreign spirits or sale of foreign liquor.
2. Licence for possession of liquor by a non-proprietory club for supply to members.
3. Licence for possession of liquor by the Star Hotels for supply to foreign tourists and foreigners resident in India holding personal permits and also citizens of India holding personal permits for consumption within the licensed room of the Hotel or for renewal to their private rooms in the same hotel in which they stay for consumption there.
4. The licence for possession of Liquor by hotel run by the Tamilnadu Tourism Development Corporation for supply to persons who actually stay in the hotel for a minimum period of 3 hours for consumption in the rooms of the hotel.
5. Licence for possession for liquor by the manager, canteen stores department ( India ), canteen retail and bulk issue depot, Fort St. George, (Chennai) for a supply to military contractors and officers of the military units holding licences.
6. Licence for possession and sale of liquor to military units and military personnel and ex-servicemen.
7. The licence for possession and issue of liquor by the madras seamen’s institute or madras seamen’s hostel to the officers seamen of the merchant navy.
8. Licence for possession and use of liquor for Scientific Industrial or such like purposes.
9. Licence for possession and sale of wine, grape juice or other liquor for sacramental purposes.
10. A special licence for possession and issue of liquor to international passengers on aboard the aircraft of Air-India.
11. Special licence for possession and issue of liquor including bottled liquor to international air passengers transiting the Meenambakkam civil airport who are required to wait at the airport transit lounge reserved for such passengers before resuming their journeys.
12. Special licence for possession of liquor by an approved restaurant and to serve liquor for consumption in the bar of the restaurant to the foreign tourists or foreign residents of India or Indian citizens during their halt at the airport.
13. Licence for possession and vend of medicated wines.
14. The licence for possession and sale of brandy or medicated wines for medicinal purposes by chemists or by persons or firms which employ chemists.
15. Licence for possession and issue of brandy or medicinal wines for medicinal purposes by a medical practitioner.
16. Licence to medical practitioner in charge of a hospital for possession and use of brandy or cashew barrack or medicated wines for medicinal purposes in the hospital.

Bar License for Hotel in Tamilnadu

Of the types of bar license mentioned above, the most common type of bar license obtained or approved in Tamilnadu is  bar licence for possession of liquor by the hotels. For a hotel to obtain bar license in Tamilnadu or Chennai, the hotel must conform to the following specifications laid out in the Tamilnadu Liquor (License and Permit) Rules, 1981. The hotel must satisfy the following conditions and be certified as such by the  Director of Tourism of the State Government:

• The hotel must have twenty lettable bedrooms and forty beds with attached bathrooms;
• A hotel must have separate dining room and restaurant;
• Hotel must have good quality cuisines, both Indian and Continental;
• The hotel must have a clean kitchen and washing facilities;
• A hotel must have well trained staff with uniform;
• Hotel must have special facilities like conference hall, recreation facilities (indoor games);
• Hotel must have adequate parking space.

Procedure for Obtaining Bar License in Tamilnadu

To obtain bar license for hotel in Tamilnadu, license can be applied under the category "Licence for possession of liquor by Star Hotel for supply of foreign tourists, foreigners resident in India holding personal permits and also citizens of India holding personal permits for consumption within the licensed room of the hotel or for removal to their private rooms in the same hotel in which they stay for consumption there.". The application must be made to the Commissioner of Prohibition and Excise using Form F.A.1.3 by the manager of the hotel concerned.

Cost for Obtaining Bar License in Tamilnadu

The fee for bar license for hotel is as follows:

Five Star Hotel

Application Fee: Rs. 400 License Fee: Rs. 1000 Privilege Fee: Rs. 4,00,000 For additional permit room in five star hotel: Application Fee: Rs. 600 License Fee: Rs. 1,500 Privilege Fee: Rs. 4,00,000

Four Star Hotel

Application Fee: Rs. 400 License Fee: Rs. 1000 Privilege Fee: Rs. 3,00,000 For additional permit room in four star hotel: Application Fee: Rs. 600 License Fee: Rs. 1,500 Privilege Fee: Rs. 3,00,000

Three Star Hotel

Application Fee: Rs. 400 License Fee: Rs. 1000 Privilege Fee: Rs. 2,00,000 For additional permit room in three star hotel: Application Fee: Rs. 600 License Fee: Rs. 1,500 Privilege Fee: Rs. 2,00,000

Two Star Hotel

Application Fee: Rs. 400 License Fee: Rs. 1000 Privilege Fee: Rs. 1,50,000 For additional permit room in two star hotel: Application Fee: Rs. 600 License Fee: Rs. 1,500 Privilege Fee: Rs. 1,50,000

One Star Hotel

Application Fee: Rs. 400 License Fee: Rs. 1000 Privilege Fee: Rs. 1,00,000 For additional permit room in one star hotel: Application Fee: Rs. 600 License Fee: Rs. 1,500 Privilege Fee: Rs. 1,00,000

Operation of Hotel Bar in Tamilnadu

Once bar license is obtained, the licensee can obtain supplies from a wholesale depot licensee in the State or from such other source as the commissioner may appoint or approve.  Licensed bar can serve liquor to foreign tourists, foreigners resident in India, citizens of India for consumption within the licensed room of the hotel or removal to their private rooms in the same hotel in which they stay for consumption there or in the lawns and appurtenants of such hotel or for consumption within the Tourism Resort apartment. Bars are required to maintain accounts of daily transaction in Form F.Ac.3 and F.Ac.3(a).

Talk to an IndiaFilings Advisor to know more about the procedure for starting a Bar or hotel in Tamilnadu.