The Union Territory of Lakshadweep Administration on August 14, 2026, issued the Lakshadweep Excise Regulation, 2026.
The Lakshadweep Excise Regulation sets up a comprehensive framework for controlling every aspect of liquor in the Union Territory — from manufacturing to sale. At the top of this system sits the Excise Commissioner, appointed by the Administrator, who acts as the chief regulatory authority. Their responsibilities span regulating and monitoring liquor manufacture, import, sale and consumption, curbing illegal trade and illicit distillation, protecting excise revenue, promoting responsible drinking, training excise staff, and modernizing operations through e-governance. Supporting this office are Deputy Commissioners and District Excise Officers, with powers that can be delegated (or withdrawn) as needed, and the Administrator can even authorize a reward system to recognize strong performance by officers or informers.
Before anyone can legally manufacture, store, transport, sell, or import liquor, they need a licence or permit — operating without one is prohibited outright. To qualify, an applicant must be an Indian citizen over 18, free of any excise-related blacklisting, and must submit a sworn affidavit confirming things like: suitable business premises located at least 50 meters from schools, hospitals, religious sites, or hostels; a clean criminal record; solvency; and that no underage or unwell staff will be employed. Licences aren't automatically renewable, aren't transferable without approval, and can be suspended or cancelled for reasons like non-payment of dues, breach of conditions, fraud, or criminal conviction — with no compensation owed to the licensee in such cases. Certain safeguards exist too, such as protection against licences being invalidated for minor technical defects.
On the revenue side, the government collects excise duty, licence fees, label registration fees, and import/export fees, with duty rates capped by a Schedule and notified periodically by the Administrator. Recovery of unpaid dues follows the same process as land revenue arrears, and defaulters risk having their business assets attached and sold. Interest at 12% per annum applies to late payments, though the Excise Commissioner can waive or reduce this in cases of genuine hardship. Importantly, dues remain payable even while a case is pending in court, unless a stay is specifically granted.
Finally, the Regulation lays out a strict penalty structure for violations — ranging from unauthorized manufacturing or bottling to illegal possession of liquor-making equipment, selling to minors, or exceeding permitted quantities. Penalties escalate sharply for more serious offences: making denatured (undrinkable) spirit fit for consumption carries a minimum two-year sentence, while adulterating liquor with harmful substances resulting in death can lead to life imprisonment and fines up to Rs. 10 lakh. The law also allows courts to independently order manufacturers or licensed sellers to pay compensation directly to victims or their families — starting at Rs. 3 lakh for death, Rs. 2 lakh for grievous injury, and Rs. 20,000 for other harm — regardless of whether a criminal conviction is secured.
[File No. A-14/90/2022-COL/722]
