Telangana Liquor Licence Applications Drop 28% Despite Deadline Extension

The Telangana Prohibition and Excise Department has received over 90,000 applications for the allotment of 2,620 A4 category liquor shop licences across 34 excise districts. According to official data, 95,436 applications were submitted this year — a sharp decline of nearly 36,000 from the previous year.

In 2024, the department had received around 1.32 lakh applications. The 28% drop in license applications has been attributed to the steep hike in the non-refundable application fee, which was increased from ₹2 lakh to ₹3 lakh this year.

Despite the decline, the application process generated around ₹2,900 crore in revenue through fees.

However, the exercise has been overshadowed by a legal dispute over the government’s decision to extend the application deadline. Initially set for October 18, the last date was extended to October 23, citing disruptions caused by the BC bandh, consecutive public holidays, and bank closures.

A writ petition challenging the extension has been admitted by the Telangana High Court, with petitioners arguing that the move was arbitrary and unfair to those who applied within the original timeframe, while also favouring late and speculative entrants.

The petitioners further claimed the extension was financially motivated, as it resulted in a notable rise in applications and revenue.

Meanwhile, the draw of lots to finalise eligible applicants is likely to be delayed until the High Court delivers its verdict. Any stay or judicial directive could impact the licence allotment schedule and the state’s excise revenue targets for the current financial year.