A controversy has emerged over the granting and renewal of bar licences to 147 hotels in Kerala that did not possess the mandatory Central Government-approved star classification. The licences were reportedly issued during the CPM-led Left Democratic Front (LDF) government, allegedly at the direction of then Excise Minister M.B. Rajesh.
Official correspondence suggests that the Minister’s office instructed the Excise Commissioner to renew these licences pending hotel reclassification, raising serious questions about adherence to Central tourism regulations and the State’s licensing norms.
The issue centres on a letter dated January 30, 2026, sent by the Minister’s private secretary, N. Sasidharan Nair, to the Excise Commissioner. The letter requested renewal of bar licences until the Central Ministry of Tourism completed the reclassification process.
This move reportedly followed a memorandum submitted by Ajit C. Nair, General Secretary of the Federation of Kerala Hotels. Despite the requirement that hotels must have at least a three-star classification to obtain a bar licence in Kerala, several establishments without such status were granted licences, indicating repeated violations of Central rules.
Separate parameters and permissions are required to open bars in Panchayats, Municipalities and Corporations respectively.
There should be a stipulated distance from educational institutions, places of worship and SC/ST colonies. Evidence of possession of the hotel building, the building plan, FSSAI (Food Safety and Standards Authority of India) food licence, NOC from the Fire and Rescue Services, Police Department clearance, conduct certificate of the applicant, criminal background investigation report and clearance from the Excise and Police departments are prerequisites.
The ownership should be under a company, partnership or proprietorship and should conform to the prescribed legal structure. However, none of these requirements were met before issuing the licences.
The LDF government tried to pass the buck to the Central Government in connection with the issuance of these alleged illegitimate licences.
The Central Government realised this, and consequently, the Central Ministry of Tourism issued a letter on February 28, 2025, to the State Excise Commissioner asking that bar licences should not be issued.
However, no serious opposition has come from the ruling Congress or the United Democratic Front (UDF) it leads, even after they realised the occurrence of such a gross violation of rules during the LDF regime. This has caused dissent among the Congress rank and file.
M.M. Sanjeevkumar, General Secretary of the Kollam District Congress Committee (DCC), has approached the court in this regard. Consequently, the V.D. Satheesan faction has come out in resistance. Excise Minister M. Liju has also become the target of this indirect attack.
Critics argue that this whole episode shows how both the UDF and the LDF practise corruption through eyewash, betraying the people. They further allege that this is why the BJP has accused the CPM and the Congress of having a secret deal in the state.
