Gujarat Govt. to Allow Liquor Consumption in Gift City

Introduction

The state government of Gujarat has permitted the consumption of liquor in GIFT City to attract global financial institutions. The state government announced on Friday, December 22, that it would allow consumption of alcohol in hotels, restaurants, and clubs offering “Wine and Dine in Gujarat International Finance Tech City near the state capital Gandhinagar.

Under the new scheme, licenses will be issued to hotels, restaurants, clubs (existing and upcoming), bars, and restaurants in the GIFT City area. Those operating in the GIFT City area on government roads and their official guests may visit hotels, restaurants, and similar clubs with bars and food service areas.

Gujarat Gift City: A Promising Hub for Business and Development

Gujarat Gift City is a duty-free economic hub that is trying to position itself as a competitive alternative to places like Singapore. The commercial segment includes offshore banking, asset management, and insurance, attracting companies involved in capital markets, IT services, and accounting services. The area is located on the bank of the Sabarmati River and has innovative infrastructure.

Government Guidelines for the Liquor Law Exemption Rules in GIFT City

The Gujarat government has issued guidelines to deregulate liquor in Gujarat International Finance Tech City (GIFT City). Here are the main points of the guidelines:

1. Requires a FL-III License To Serve Liquor

If you are a unit located in GIFT City and you want to get an FL-III license, you have to fill out Form “A” and submit it before the superintendent of Prohibition and Excise, Gandhinagar. After reviewing the information, the Coordinator shall submit the proposal and its recommendation to the GIFT Facilitation Committee through the Director for a decision. Once the committee approves the recommendation, the superintendent of prohibition and excise will issue the license in Form FL-III.

2. Liquor is only served at a particular location

The Licensee shall serve alcoholic beverages only in the designated area of the “Wine & Dine” establishment. To get a liquor license for a “wine and dine” establishment, you have to pay a fee of Rs 1 lakh and security of Rs 2 lakh per annum. This license will be issued to individuals who are 21 years of age.

3. Duration and fine of the Liquor License

The license may be issued initially for 1 to 5 years and can be renewed for up to five years at a time. The license fee is Rs 1,000,000/- (Rupees one lakh) per annum, and the security deposit is Rs 2,000,000 (Rupees two lakh) per annum, according to the notification. The licensee must follow the provisions of the Gujarat Prohibition Act, 1949.

4. Temporary Permits for Visitors

Visitors to GIFT City can obtain temporary permits for one day, which allows them to consume alcohol in designated areas. However, they must be accompanied by a GIFT City crew.

5. Who is eligible to obtain a License Access Permit (LAP)?

According to the rules, the recommending officer will need to draw up a list of employees who are interested in obtaining an LAP and send it to the authorizing officer. The authorizing officer will then issue the LAP cards based on the approved list to the recommending officer.

Liquor Access Permits are valid for two years in the GIFT City and can be renewed for a further period of two years. The fee for the permit is Rs 1000 per year. The permit shall be canceled if the holder ceases to be an employee of the company, organization, or unit in the GIFT City.

6. Regulations and Surveillance

The guidelines outline strict regulations, including that the purchase of alcohol from licensed shops and CCTV camera monitoring in designated drinking areas must be photographed and saved for three months, as and when requested and made.

Why did Gujarat Govt. made such a decision?

1. The Gujarat government has decided to allow alcoholic beverages in Gujarat International Finance Tec-City (GIFT City) to boost the local economy and attract more foreign investment.

2. Gujarat has been a dry state since its formulation in 1960, but that does not prevent residents from drinking alcohol, and drug dealers are swarming every neighborhood, either by WhatsApp message or by telephone call.

3. Tax revenues from the alcohol industry can be used for improvements such as schools and hospitals, and they can also be used for enforcement to curb the production of illegal alcohol.

4. The relaxation of the prohibition laws is likely to drive more foot traffic from tourists to the Gift City, increasing employment opportunities in the area.

Final Thoughts

In conclusion, Gujarat will emerge as the economic capital. To connect with them socially, this decision has been taken to allow liquor in Gift City, aiming at modernizing the area, attracting more business opportunities, and meeting the needs of businesses and visitors to the area.

Suggested Read: What are the advantages of investing in a GIFT City?