This topic contains 4 replies, has 3 voices, and was last updated by  Naag 3 years, 3 months ago.

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  • #3539

    Hi,</p>
    <p>Greetings to every esteemed member of this website. This is Hoshang Joshi from Bangalore. Am planning to start a company which sells liquor online, so i would request everyone to suggest, guide me in the same. All responses are welcomed. You can also mail me your responses to moc.l1550545467iamg@1550545467700gn1550545467ahsoh1550545467.

    #5619

    Rajeshwar
    Member

    Hi Aushoong Joshi,

    Well its pretty cool idea,
    Even i planned earlier to start same business and i developed the model.
    After making little re-search i came to know that we are going to face some legal issues in storing/ selling individually w/o license so i dropped the plan.
    Any how as you are instrested please make some deep re-search before you work on.

    You are most welcome for any support from my side.

    #5648

    Naag
    Keymaster

    In short, you are better off with some other idea or wait for laws to be revised.

    @rajeshwar is spot on. Selling alcohol aka liquor online is a serious legal challenge not just in India but also in developed nations such as US. In India, you’d need to obtain a license from state and local authorities to sell alcohol in shops. There is no one central department that issues these licenses for all of India similar to national permit you’d find for buses and trucks/lorries. So, the licenses are needed in every state where you operate. Even then, logistics is a challenge as several state & local laws prohibit and make it illegal to buy, sell or transport of alcohol in manner other than prescribed in the law. It gets even more trickier as several payment gateways, online payment processors ban selling such goods online. Of course, you have the COD option in India but you have host of other issues mentioned earlier you’d have to deal with first. While some might be tempted to make use of loopholes in the legal system by way of partnering with licensed shops directly and acting just as a marketplace, it is best to consult with a legal expert and be prepared to face several challenges.

    #5657

    Rajeshwar
    Member

    @naag

    Hi Naag yes i agree with you but still there are some people who are selling wine as a gift is common (fnp.com sells wine with cake etc.)
    In Bangalore, Madhukola sells hard drinks online and even offers home delivery for FREE in Bangalore. It is primarily a brick and mortar liquor store chain with a website.
    In general, you cannot sell liquor inter-state because of tax difference and invites smuggling.
    The sale of alcohol is a state subject, so you’ll need to abide by the (often disparate) laws specific to each state. The legal drinking age varies by state; in some states, such as Gujarat, Manipur and Nagaland do not permit the sale and consumption of alcohol. You need to get a license from the state excise department (for each state you plan to deliver to). Some states (such as Karnataka) do not provide these licenses anymore (although, you can purchase one from an existing licensee for a very hefty fee).
    Other issues include age verification upon delivery, verification of liquor permits (some states, such as Maharashtra, require individuals to own permits to consume liquor, although this law is rarely followed), convincing your payment gateway to allow you to take online payments (assuming you choose to accept payments online- banks are incredibly conservative about things that are outside of the norm) and dealing with rampant corruption while trying to acquire a license.
    For instance, the Bombay prohibition act prohibits transport, buying, selling, stocking, producing and consuming alcoholic drinks unless done in the manner prescribed by law. For doing any of the above, you need a license. Hence, it is not really possible to either buy or sell alcohol without violating the law. Given the present content of law, one cannot even home deliver alcohol – it must be bought from a licensed shop only. Selling liquor online, microbrewery etc. are illegal in India until laws are reformed. It is a different thing that the administration does not apply these archaic laws.
    Please note that states have different laws with respect to liquor control and it is a state subject. State governments can reform the laws but there is little political will in this regard.
    Selling it online will open a whole host of regulatory issues which the authorities may frame altogether new rules in order to regulate it. The risk in such an enterprise is far too great. Even if you do get an off license of every state, the same may easily get cancelled under regulations which crack down on your operations
    Moreover, getting a license for selling alcohol is an expensive proposition, and to get state specific licenses will be a massive headache for someone trying to open countrywide. There is a reason we don’t have chain liquor stores in India, because of the licensing regimen we have in place.Given the situation brought into effect by Bombay Prohibition Act which is still followed by Gujarat even after their breaking up it’s impossible to even drink alcohol in the state.
    Lakshadweep, Manipur, Mizoram, Nagaland has complete ban on sale of alcohol. So starting up on such a business would incur a lot of costs on licenses and permits in those states where it is still allowed. And still the market is fairly narrowed down to a two or three states which include West Bengal and Karnataka. Selling liquor online is simply not worth the costs associated.

    • This reply was modified 3 years, 3 months ago by  Rajeshwar.
    #5667

    Naag
    Keymaster

    the last line sums it up all @rajeshwar. I’d add, “At this stage, selling liquor online in India is simply not worth the costs and RISKS associated.”

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