MAHARASHTRA EXCISE DEPARTMENT — OFFICIAL DOCUMENT ANALYSIS

Document Type: Government Resolution (GR) / Administrative Policy Order

Reference Number: शासन निर्णय क्र. एमआयएस 0417/प्र.क्र. 59 (भाग-1)/राउशु-2
(GR No. MYS 0417/P.C. 59 (Part-1)/RAUSU-2)

Portal ID: 1530

Issued By: Maharashtra Government, Home Department (गृह विभाग), Government of Maharashtra

Date of Issue: 24.06.2022 (24 June 2022)

Digital Portal Reference Number: 202206241553231829

Website: www.maharashtra.gov.in

Signed By: Yuvaraj B. Ajetrao, Deputy Secretary, Home Department, Maharashtra Government

Effective Date: From date of publication (with effect for financial year 2022-23 onwards for certain provisions)

SUMMARY

This Government Resolution establishes comprehensive conditions, terms (शर्तें/अटी), and eligibility criteria (अर्हताचे निकष) for lease/rental arrangements, sub-lease arrangements, tie-up agreements, and similar contractual arrangements for distillery units (नमुना-आय/Sample Distillery), Permitted Location Liquor units (पीएलएल), Country Liquor Class-I units (सीएल-1), and Beer (Brewery) License units (बीआरएल) under the State Excise Department, Maharashtra. Previously, such arrangements lacked uniform regulation across license categories. This GR establishes uniform standards for all these license-holder units operating under lease, sub-lease, or tie-up agreements, introduces a privilege fee (विशेषाधिकार शुल्क) of 15% of annual renewal fee payable annually during the contract period, and prescribes strict compliance, blacklisting, and contract termination provisions for violations or criminal offences.

KEY PROVISIONS

A) LEASE/SUB-LEASE AGREEMENT ELIGIBILITY CRITERIA (FOR SAMPLE DISTILLERY/PLL/CL-1/BRL UNITS)

Labelling and Brand Requirements:

1. Dual Nomenclature on Labels (अनिवार्य):

   • On every label of produced liquor, BOTH names must be printed:
     • Licensee (lessee/भाड्याने घेणारा): The company taking lease must have its name on labels
     • Lessor (original license holder/लेजर/मूळ अनुज्ञप्तीधारक): Original license holder's name must also appear on labels

2. Logo Usage by Lessee:

   • Licensee (company taking lease) is permitted to use its own logo on liquor labels

3. Police Character Verification (आवश्यक):

   • All Directors/Partners of the lessee company must obtain favorable police character verification report from police department

4. Bank Guarantee (आवश्यक):

   • One year's permissible license fee must be deposited as bank guarantee (गैर वापसी शर्ती) with government

5. Registration of Lease Deed (आवश्यक):

   • Lease/Sub-lease agreement between lessee and lessor must be properly registered under Stamp and Registration Act

6. Joint and Several Liability (संयुक्तपणे आणि पृथक्पणे दायित्व):

   • Both lessee and lessor companies are jointly and severally liable for:
     • Payment of license fees
     • Payment of excise duty
     • Payment of all other government dues
   • Non-payment of any sum shall make BOTH entities liable

7. Blacklisting Clause (काळ्या यादीत समावेश):

   • If lessee unit violates any provision of:
     • Bombay Prohibition Act 1949 (महाराष्ट्र दारुबंदी अधिनियम 1949), OR
     • Rules thereunder (त्याखालील नियम), OR
     • Commission of any criminal offence (गुन्ह्याांची नोंद)
   • Consequence: Lessee company AND its Directors/Partners shall be immediately blacklisted (काळ्या यादीत समावेश)
   • Action: Lease agreement shall be immediately terminated (तात्काळ प्रभाविने रद्द)

B) TIE-UP AND SIMILAR CONTRACTUAL ARRANGEMENTS TERMS (FOR DISTILLERY/PLL/CL-1/BRL UNITS)

Eligibility Conditions for Tie-Up Agreements:

1. Mandatory License/Brand Requirement (आवश्यक):

   • The party entering into tie-up arrangement MUST possess:
     • EITHER: Existing liquor production license, OR
     • If foreign company: Its own registered brand (स्वतः चा ब्रॅंड)

2. Label Approval (लेबल मान्यता):

   • Commissioner of State Excise (आयुक्त, राउशु) shall approve tie-up labels ONLY if:
     • All requirements of Circular dated 28.10.1997 are complied with
     • All subsequent amendments to that circular are incorporated

3. Registration of Tie-Up Deed (आवश्यक):

   • Tie-up agreement between parties must be registered under Stamp and Registration Act (स्टॅंप ि रजिस्ट्रेशन कायद्यानुसार नोंदणीकृत)

4. Violation and Termination (उल्लंघन केल्यास):

   • If tie-up party violates any provision of:
     • Bombay Prohibition Act 1949, OR
     • Rules thereunder, OR
     • Commission of criminal offence
   • Consequence: Tie-up agreement shall be immediately terminated with immediate effect (तात्काळ प्रभाविने रद्द)

C) DURATION, PRIVILEGE FEE CHARGING, AND RENEWAL TERMS

1. Authority for Approval (अनुमती देण्याचा अधिकार):

• The authority competent to approve lease/sub-lease or tie-up agreements is:
  • The same authority that originally granted the underlying license (ज्या प्रमाखी-याने अनुज्ञप्ती मंजूर केली, त्या प्राविकार्यास)

2. Contract Period (कराराचा कालावधी):

• License holders may execute lease/sub-lease/tie-up agreements for any duration they wish (किती ही कालाविधीसाठी)

3. Privilege Fee (विशेषाधिकार शुल्क) — CRITICAL PROVISION:

Fee Amount:

• 15% of Annual License Renewal Fee (अनुज्ञप्तीच्या वार्षिक नवीकरण शुल्काच्या 15 टक्के इतके)

Frequency:

• Annually (दरवर्षी) — payable EVERY YEAR during the contract period

Timing of Payment (भरणे कधी आवश्यक):

• Privilege fee must be paid together with annual license renewal fee (अनुज्ञप्तीचे नवीकरण करतेवेळी वार्षिक नवीकरण शुल्कासोबत भरणे आवश्यक)

4. Consequence of Non-Payment of Privilege Fee (शुल्क न भरल्यास):

• If privilege fee is not paid within the prescribed time period:
  • Entire lease/sub-lease/tie-up agreement approval shall be deemed CANCELLED (मान्यता रद्द समजण्यात येईल)
  • Contract shall be VOID

5. Applicability to Existing Agreements (प्रचलित करारांवर लागू):

• Units that have previously submitted declarations/affidavits accepting the final conditions of this GR shall continue under this GR

• Units that have NOT given declarations/affidavits (भाड्याचा/टाय-अपचा देणारा मान्य करार न घेतलेल्या घटकांना):

  • Shall be liable for privilege fee with effect from financial year 2022-23 onwards (सन 2022-23 या वर्षापासून लागू)
  • This applies retrospectively from April 1, 2022

REGULATORY AMENDMENTS REQUIRED

Status of Subordinate Rules:

• Implementation notification shall be issued separately by Maharashtra Government
• Existing rules under Bombay Prohibition Act 1949 shall be amended as necessary to incorporate these conditions

SPECIFIC LICENSE TYPES AFFECTED

This GR applies ONLY to the following license categories:

1. नमुना-आय (Sample Distillery) — Sample Distillery License (Spirit Production)
2. पीएलएल (Permitted Location Liquor) — PLL License
3. सीएल-1 (Country Liquor Class I) — CL-I License (Country Spirit/Whisky)
4. बीआरएल (Brewery License) — Beer and Brewery License

Critical Note: The GR explicitly states that:

• These lease/sub-lease provisions existed only for Sample Distillery, PLL, and CL-I under prior law
• BRL (Brewery) license had NO such provision in existing rules — this GR introduces it for the first time
• Tie-up agreements had no explicit provision in prior law — this GR is the first uniform regulation

DISTRIBUTION AND IMPLEMENTATION

Copies distributed to (प्रति):

1. आयुक्त, राज्य उत्पादन शुल्क, मुंबई -23 — Commissioner of State Excise, Mumbai-23
2. सर्व जिल्हाधिकारी — All District Collectors
3. सर्व विभागीय उप आयुक्त, राज्य उत्पादन शुल्क — All Divisional Deputy Commissioners of State Excise
4. सर्व अधीक्षक, राज्य उत्पादन शुल्क — All Superintendents of State Excise
5. RAUSU-2 (File/संग्रहार्थ) — For record retention

IMPORTANT NOTES, CONDITIONS, AND PENALTIES

Penalties and Enforcement:

Special Provisions and Exceptions:

1. Retroactive Application (पूर्वव्यापी प्रभाव):

   • Financial year 2022-23 onwards
   • Units that gave binding declarations before publication shall comply
   • Units without declarations from 2022-23 onwards

2. Lessor and Lessee Joint Responsibility (संयुक्त दायित्व):

   • BOTH entities remain liable even if one party defaults
   • Government can recover from either party

3. Police Verification Requirement (पोलिस पडताळणी आवश्यक):

   • No tie-up arrangement can be approved without favorable police character report for all directors/partners

4. Bank Guarantee Non-Refundable (गैर वापसी):

   • Bank guarantee is intended as security, not a deposit
   • Government retains right to invoke in case of default

CROSS-REFERENCES TO EXISTING LAW

Subordinate Legislation Referenced:

1. Bombay Prohibition Act, 1949 (महाराष्ट्र दारुबंदी अधिनियम, 1949)
2. Government Notification dated 16 November 2011 (शासन अविसूचना वि. 16 नोव्हेंबर 2011)
3. Circular dated 28.10.1997 (परिपत्रक वि. 28.10.1997) — for label approval standards in tie-up cases
4. Stamp and Registration Act — for registration of lease/tie-up deeds
5. Bombay Foreign Liquor Rules 1953 & Maharashtra Country Liquor Rules 1973 — insofar as applicable to underlying licenses

DIGITAL AUTHENTICATION

• Digital Signature Status: Yes, digitally signed (डिजीटल स्वाक्षरीने स्वाक्षांकित)
• Website Availability: Document available on www.maharashtra.gov.in
• Reference Code: 202206241553231829

IMPLEMENTATION STATUS

Outstanding Actions:

• Separate notification on subordinate rules amendments to be issued
• Separate notification on privilege fee amounts and collection procedures to be issued
• Circular to Commissioner of State Excise for implementation direction
• Communication to all license holders for compliance from 2022-23

Compliance Deadline: Financial Year 2022-23 (from 01 April 2022)

END OF ANALYSIS

This GR is legally binding and supersedes all prior inconsistent administrative instructions relating to lease/sub-lease/tie-up arrangements for Sample Distillery, PLL, CL-I, and BRL units in Maharashtra.