FL-III Licence Maharashtra — Hotel, Restaurant & Bar Foreign Liquor Licence

Introduction

An FL-III licence is the licence that lets a hotel, restaurant or bar in Maharashtra sell foreign liquor by the glass for consumption on its own premises. In everyday language it is the "permit room" or "bar" licence, and it is the backbone of the state's hospitality-liquor trade.

The name "permit room" comes from the structure of Maharashtra law itself. Under the Maharashtra Prohibition Act, 1949, prohibition is the rule and every dealing in liquor is lawful only under a licence, permit or authorisation. The consumer, too, is in law a permit holder, and the FL-III premises is the room where permit holders may lawfully be served.

"Foreign liquor" here does not mean imported liquor alone. It covers Indian-made foreign liquor (IMFL) — whisky, rum, vodka, gin, brandy — plus beer, wine and imported spirits. Everything other than country liquor and toddy.

Legal framework

FL-III is granted under Part III ("Hotel Licence") of the Bombay Foreign Liquor Rules, 1953 (now styled the Maharashtra Foreign Liquor Rules, 1953), framed under the Maharashtra Prohibition Act, 1949 (formerly the Bombay Prohibition Act). Fees are fixed separately each year by the Commissioner of State Excise under the Maharashtra Potable Liquor (Periodicity and Fees for Grant, Renewal or Continuance of Licence) Rules, 1996.

The key provisions an applicant or licensee must know:

Why the consumer needs a permit

Under the Act, possession and consumption of liquor is an offence unless covered by a permit. Rule 70-D allows the Collector to grant a permit to any person not below 25 years of age, for one year (₹100) or for life (₹1,000). Mild beer and mild liquor (up to 5% v/v) may be bought and consumed without a permit by anyone aged 21 or above under Rule 70-F.

In practice, a bar serves walk-in customers by issuing them one-day permits sold at the counter for a nominal fee. The licensee's obligation is to ensure every person served spirits is covered by a valid permit and meets the age limit.

How FL-III differs from related licences

FL-III is the only regular licence that lets a hotel or restaurant serve spirits by the peg to the public. The licences most often confused with it:

Eligibility — who can apply

Only the manager of a hotel, or the manager or proprietor of a restaurant, can apply for an FL-III. The liquor business rides on an existing food business; a stand-alone bar with no eating house is not eligible.

Under Rule 44, the Collector must also be of the opinion that the establishment is of an "adequately good standard". The rule lists the factors: the grade assigned to it, accommodation and amenities, the nature of its clientele, and the standard of food, refreshments and service. Within Municipal Corporation limits a Grade-1 certificate is required.

The applicant may be any of the following:

• An individual proprietor.
• A partnership firm or LLP, with a registered deed.
• A company, with its certificate of incorporation, MoA, AoA and a board resolution authorising the liquor trade.
• A co-operative society or trust, with its registration and governing-body resolution.

The applicant and the premises must clear a police antecedent and law-and-order verification. A person with a record of excise or other criminal offences will find the committee unwilling to recommend the licence.

The people who actually serve liquor are also regulated. Under Rule 49, the licensee may not employ as an authorised servant anyone below 21 years of age, anyone of unsound mind or suffering from an infectious disease, anyone the Collector considers of bad character, anyone whose nokarnama or licence was earlier cancelled, or anyone convicted of an offence (the last three can be relaxed by the Collector for recorded reasons).

Location restrictions and NOCs

The single biggest reason FL-III applications fail is location. Rule 45(1C) bars an FL-III for any hotel or restaurant within 75 metres of:

• an educational institution;
• a religious institution;
• a bus stand, station or depot of the Maharashtra State Road Transport Corporation (MSRTC);
• the boundary of a National or State Highway.

Note: this 75-metre rule for FL-III is different from the 50/100-metre rule that applies to FL-II wine shops under Rule 25(2). Applicants frequently mix the two up.

What counts as an institution

An "educational institution" means a pre-primary, primary or secondary school managed or recognised by a local authority, the State or the Central Government, and any college affiliated to a university. Private coaching classes are expressly excluded.

A "religious institution" means a temple, math, mosque, church, synagogue, agiary or other place of public worship managed or owned by a public trust registered under the Bombay Public Trusts Act, 1950, plus any institution the Government specifies by order. An unregistered roadside shrine does not, by itself, meet this definition.

How the distance is measured

The 75 metres is not measured as the crow flies. It runs from the mid-point of the entrance of the hotel or restaurant, along the nearest path a pedestrian ordinarily takes, to:

1. the mid-point of the nearest gate of the institution if it has a compound wall, or the mid-point of its nearest entrance if it does not;
2. the mid-point of the nearest gate of the MSRTC bus stand or depot, or the nearest point of its boundary if it has no compound wall;
3. the boundary of the highway.

The Bombay High Court has applied this pedestrian-path method in several FL-III disputes, including transfer cases where schools objected to a bar in the neighbourhood.

Highways

The department's own guidance states a working norm (Home Department letter BPA-689/14/PRO-2 dated 14 July 1989):

• 36 metres from the mid-point of a National or State Highway in civil or industrial areas;
• 75 metres from a National Highway and 50 metres from a State Highway in non-civil areas;
• No highway restriction where the highway passes through a Municipal Corporation area.

Over and above the State rules, the Supreme Court's 2016–17 orders on liquor sale along highways must be checked. As later clarified, they do not bar licensed establishments within municipal areas, but premises outside municipal limits on a highway need careful verification before any investment.

Existing licences

The 75-metre restriction does not apply to a hotel or restaurant that held a valid FL-III immediately before the Bombay Foreign Liquor (Amendment) Rules, 1990 came into force.

NOCs and local objections

If the premises are rented, the owner's NOC for running a permit room is required; in a co-operative housing society, the society secretary's NOC is also needed. Where complaints are received against a proposed permit room, the district committee takes an appropriate decision. Local opposition, especially from residents or institutions nearby, can therefore delay or defeat an otherwise compliant application.

Premises requirements

The department's minimums are modest, but the inspecting officer checks them on site against the plan:

The permit room is a defined, approved area. Under Rule 52, foreign liquor may be served only "in the area assigned for that purpose and approved by the licensing authority", or to a resident guest in his room. Serving spirits on an unapproved terrace, lawn or extra floor is a breach even if the business is otherwise licensed.

Mild beer and mild liquor, by contrast, may also be served in the dining room to persons aged 21 and above.

Any later change — adding a floor, extending the bar area, or opening an outdoor section — needs prior approval of a revised plan. Running the extra area first and regularising later is a common and avoidable cause of action.

Application procedure and documents

The licensing authority for FL-III is the District Collector, acting on the recommendation of a district committee; the application is filed through the Superintendent of State Excise of the district. The process now runs online on the department's Excise Online Services portal, with fee payment through GRAS.

Step by step

1. Apply online in Form FL/A-IC with ₹1,000 application fee, a ₹5 court-fee stamp, and the documents listed below.
2. Site inspection. An officer not below the rank of Sub-Inspector inspects the premises, checks the plan and verifies distance restrictions, and submits a report.
3. Police verification. The Superintendent seeks an antecedent report on the applicant and a law-and-order report on the premises from the police.
4. Scrutiny and committee. The Superintendent scrutinises the file and places it before the committee under Rule 44-A.
5. Committee recommendation. The committee — Collector (Chairman); Commissioner of Police or his representative not below DCP, or the Superintendent of Police; CEO of the Zilla Parishad or (in municipal areas) the Municipal Commissioner or his representative; and the Superintendent of State Excise (Member-Secretary) — considers the applicant's suitability.
6. Intimation and fee. On approval, the applicant receives an intimation, pays the licence fee through GRAS, and uploads the challan.
7. Security. The applicant furnishes the security required. Departmental practice has at different times asked for a bank guarantee of 50% of the licence fee or a solvency certificate. Confirm the current requirement with the district office.
8. Grant. After the Superintendent verifies and defaces the challan, the application is digitally approved and the licence can be downloaded from the portal.

Documents checklist

• ☐ Application in Form FL/A-IC with ₹5 court-fee stamp and ₹1,000 challan
• ☐ Identity and address proof; photograph and signature of applicant
• ☐ Constitution documents: partnership deed / LLP documents, or company registration, MoA, AoA and board resolution
• ☐ Eating-house (hotel) licence from the local authority / police
• ☐ FSSAI licence (and Health Department certificate where applicable)
• ☐ Shops and Establishments registration, if applicable
• ☐ Grade certificate (Grade-1 within Municipal Corporation limits)
• ☐ Ownership proof: 7/12 extract, property card or property-tax receipt
• ☐ If rented: registered lease/rent agreement, rent receipt, and owner's NOC for a permit room; society NOC where applicable
• ☐ Authorised construction certificate
• ☐ Four blueprints of the premises, permit-room area marked in red
• ☐ Income-tax and sales-tax/GST no-dues certificates
• ☐ Menu card
• ☐ Security / solvency as directed

Online services and the Right to Services Act

An FL-III is applied for, paid for and issued online, and it is a notified service under the Maharashtra Right to Public Services Act, 2015. That means the applicant has a legal right to a decision within the notified time, and a right of appeal if the department is late or rejects without proper grounds.

Official online portals

The Aaple Sarkar helpline for RTS services is 1800 120 8040 (toll-free).

Consumer permits online

Customers can obtain permits online without visiting an office. The annual or lifetime permit in Form FL-X-C is a notified service with a 2-day time limit, the Superintendent of State Excise being the designated officer. The one-day permit in Form FL-F is also listed as an online service on Aaple Sarkar and is generated automatically. A permit room can point walk-in customers to these, in addition to issuing one-day permits at the counter.

What the RTS Act gives an FL-III applicant

For excise licences notified on Aaple Sarkar, the pattern is: Superintendent of State Excise as designated officer, Deputy Commissioner as first appellate authority, and Commissioner of State Excise as second appellate authority.

Using RTS in practice

• The clock starts only when the application is complete. Upload every document in the checklist the first time, and keep the acknowledgement with its application number.
• Time spent on police verification and the committee meeting is part of the department's process. If the stipulated time passes without a decision, file the first appeal promptly, within 30 days.
• An RTS appeal concerns delay or wrongful rejection of the service. It is separate from an appeal against a refusal on merits under the Prohibition Act, which goes to the Commissioner and then the State Government.
• Section 4 makes the right subject to legal feasibility. RTS cannot force the grant of a licence where the premises fail the 75-metre rule or the committee finds the applicant unsuitable; it ensures a reasoned decision in time.

Licence fees

The FL-III annual fee depends on the population of the town or city where the premises are located, with an additional fee for star hotels. The Commissioner re-notifies the rates each financial year; the table below is from the official notification for 2023-24 dated 28 March 2023, the latest year whose schedule is published in machine-readable form.

Later revisions

Rates have been revised upward since. In June 2025 the State Cabinet raised excise duty on IMFL and announced higher licence fees; contemporaneous reports put the FL-III increase at 10% while the hotel industry described a 15% annual hike in renewal fees. Always take the exact figure from the notification for the current year, or from the demand raised by the Superintendent.

Rules that affect the fee

• Cantonment areas pay the same rate as the Municipal Corporation within or adjacent to which the cantonment lies.
• Five-year renewal. Licences renewed for a block of five years pay at the rate applicable when the block was renewed.
• Off-sale endorsement. Selling sealed beer or wine for take-away under the Rule 52 proviso costs an extra 25% of the FL-III fee.
• Conducting arrangement. The June 2025 Cabinet decision allowed FL-III licences to be run through a conducting (operating) agreement on payment of an additional 10% of the annual fee. Check the implementing order before entering such an agreement.

Budget beyond the licence fee as well: application fee, security, plan and consultancy costs, the eating-house and FSSAI licences, and annual renewals of all of them.

Operating conditions

Getting the licence is the easy part; keeping it depends on daily compliance. The conditions below come from Part V of the Foreign Liquor Rules (Rules 49–61).

Who may be served

A consumer permit under Rule 70-D is available only to a person not below 25 years of age. In effect, spirits may not be served to anyone under 25, and beer above 5% strength falls on the spirits side of the line.

Purchase and stock

• Liquor must be bought only from an FL-I (trade and import) licensee and brought in under a transport pass (Rule 50). Wine may also be bought directly from a licensed winery under Form BR-IX. In a few districts with few wholesalers, purchase from an FL-II may be allowed with Government approval.
• No liquor may be kept or sold other than what the licence authorises, and no stock may be kept anywhere other than the licensed premises (Rule 51).
• Adulterated, deteriorated or spurious liquor must never be received, kept or sold.

Records

• Accounts in the form prescribed by the Commissioner, in a bound book paged and sealed by the Collector, or the prescribed online system (Rule 53).
• A register of permit holders showing permit numbers, units sanctioned and daily sales to each (Rule 57(3)).
• Premises, stock and all registers are open to inspection by any officer empowered under Section 122 of the Act; any irregularity must be explained (Rule 53(2)).

Staff

The business is run personally or through servants authorised by a nokarnama in Form FL-XIV, countersigned by an excise officer not below Sub-Inspector rank (Rule 49). Keep the nokarnamas current; an unauthorised person serving at the counter is a breach.

Hours and dry days

The premises must close on the days and during the hours prescribed by the State Government, and no compensation is payable for closure (Rules 55 and 57(2)). The licensee may also close voluntarily during a riot or disturbance nearby.

Closing hours are fixed by Government order and may be further regulated by the police. In Pune, for example, the Police Commissioner in February 2024 ordered bars and permit rooms to shut by 1:30 am, with last orders at 1 am. Check the order applicable to your district.

Dry days include national days and other days notified by the State, and the closure ordered around polling under election law. The Collector issues the district list each year; display it and follow it.

Conduct on the premises

No drunkenness or gambling is allowed in or near the permit room, and disorderly persons may not be allowed to remain (Rule 56). Entertainment is also regulated by separate law, notably the Maharashtra Prohibition of Obscene Dance in Hotels, Restaurants and Bar Rooms and Protection of Dignity of Women (Working therein) Act, 2016, which requires its own licence for performances.

Renewal, transfer and changes

An FL-III is not property: Rule 59 says the licensee and his successors have no claim to its continuance after the period for which it was granted. Every change therefore needs the Collector's approval.

Renewal

• An FL-III cannot be granted beyond 31 March following the date of commencement (Rule 45(2)).
• Apply for renewal at least 30 days before expiry, with an application fee of ₹25 (Rule 45(3)).
• The Collector may renew for up to one year at a time on payment of the prescribed fee (Rule 45(4)). The fee notifications also allow renewal for a block of five years at the base-year rate.
• Renewal is done online; clear all dues, keep the eating-house and FSSAI licences valid, and keep the premises unchanged from the approved plan.

Transfer to another name

The Collector may permit transfer of an FL-III from one name to another after grant (Rule 46-A). Under Rule 61-A, the provisions governing a fresh grant apply to the transfer "mutatis mutandis". The transferee must therefore satisfy the same eligibility and verification as a new applicant, and pay the transfer fee notified by Government.

Transfer to another site

The Collector may permit a licence to be shifted from one site to another within the same district (Rule 46-B). The new site is treated like a fresh premises: it must meet the 75-metre distance restriction, the area norms and all other conditions.

Partners and directors

• No person is recognised as a partner unless declared to the Collector before grant, or added later with the Collector's agreement (Rule 46(1)).
• No recognised partner may withdraw and have his name deleted without the Collector's prior sanction (Rule 46(2)).
• For companies, intimate changes in directors and keep the board resolution authorising the liquor trade current.

Changes to the premises

Extension of the bar area, a new floor, an outdoor section, or a change in layout needs a revised plan approved before use. A change of trade name should likewise be approved and reflected in the licence.

Surrender of stock

If the licence is suspended, cancelled or not renewed, the whole unsold stock must be surrendered to the Collector at once. It is sold by the Collector and the proceeds, less expenses and Government dues, are returned to the licensee (Rule 61).

Offences, suspension and cancellation

An FL-III licensee faces two separate tracks when something goes wrong: departmental action against the licence, and criminal prosecution under the Act.

Action against the licence

Under Rule 60, a hotel or club licence may be suspended or cancelled in accordance with Section 54 or Section 56 of the Maharashtra Prohibition Act. Section 54 deals with cancellation or suspension for causes such as breach of licence conditions or conviction of the licensee or his servant. Section 56 deals with withdrawal of a licence by the competent authority. In every case the licensee should expect a show-cause notice and an opportunity to be heard; orders of the Collector are appealable to the Commissioner, with further revision before the State Government.

Criminal liability

Sale or possession of liquor outside what a licence authorises is punishable under the penal chapter of the Act, principally Section 65, with imprisonment and fine. Selling spirits from a permit room for take-away, serving in an unapproved area, or keeping stock not covered by transport passes can each be treated as sale outside the licence. Penalties have been made more stringent by amendment over the years; check the current text of the section involved.

Common violations found in inspections

Compliance checklist

A permit room that runs through this list daily and monthly will rarely face serious action.

Before opening

• ☐ Distance from schools, colleges, registered religious institutions, MSRTC stands and highways verified by pedestrian path (75 m)
• ☐ Premises match the approved plan; permit-room area clearly demarcated
• ☐ Eating-house, FSSAI, Shops and Establishments and fire compliance in force
• ☐ Licence, nokarnamas and dry-day list displayed or readily available

Every day

• ☐ Spirits served only to permit holders aged 25+ (one-day permits issued where needed); beer only to 21+
• ☐ No service to intoxicated persons; no gambling or disorder
• ☐ Service only in the approved area, and only within permitted hours
• ☐ Only authorised servants with FL-XIV nokarnamas behind the counter
• ☐ Stock and permit-holder registers written up the same day

Every purchase

• ☐ Bought only from an FL-I (or approved) source
• ☐ Transport pass received and filed; stock tallied on arrival

Every year

• ☐ Renewal applied for at least 30 days before 31 March
• ☐ All other licences renewed
• ☐ Partner, director or premises changes approved before they take effect