Karnataka High Court clears way for e-auction of discontinued or unused liquor licences

A Division Bench of the High Court of Karnataka has paved the way for the e-auction of certain types of discontinued and unallotted liquor licences under the amended excise rules. It did so by setting aside the November 2025 interim order of a single judge, who had stayed the amended rules that altered the framework for grant and renewal of these licences through the e-auction process.

The Bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Poonacha passed the order while allowing an appeal filed by the State government challenging the single judge’s interim order dated November 25, 2025.