(Update in 2025) As Amended by S. R. O. No. 1316/2025 published in K. G. Ext. No. 4068 dt. 18/11/2025 - Amendments in Rule 2(c), Rule 3, Rule 8(1)   In exercise of the Powers conferred by Section 29 of the Abkari Act, (1 of 1077) and of all other powers hereunto enabling and in supersession of all the orders on the subject, the Government of Kerala hereby make the following rules namely: -

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S.Rule 1 Short title.

These rules may be called the Abkari Shops Departmental Management Rules, 1972.

S.Rule 2 Definitions.

In these rules--

(a) "abkari shop" or "shop" means a toddy shop or an arrack shop or a foreign liquor shop;

(b) "departmental management agent" means an agent appointed to run an abkari shop under departmental management.

¹[(c) "workers committee" means a committee formed by toddy shop workers and toddy tappers of those shops in group/range level who are members of the Toddy Workers Welfare Fund Board]

S.Rule 3 Grounds for departmental management of abkari shops.

An Abkari shop may he placed under departmental management,--

(a) if the shop could not be disposed of in auction or by negotiation ^#[or otherwise] before the commencement of the lease period; or

(b) when a successful bidder fails to make the required deposit or to furnish security or personal sureties when required to do so or to take out the licence or to execute the required agreement; or

(c) when the licensee dies during the currency of a licence; or

(d) when the licence is cancelled for any reason.

¹[Provided that in cases where the Toddy Shops cannot be entrusted with any departmental management agent for want of constitution of the same or any other reason, the Deputy Excise Commissioner may entrust such shops to workers committee, after collecting proportionate rental as fixed by the Government from time to time for the toddy shops run by such workers committee.]

S.Rule 4 Appointment of departmental management agent.

(1) The Excise Inspector of the Range concerned shall be responsible to appoint an agent to run an abkari shop under departmental management.

(2) No relative or nominee of the original auction purchaser or licensee shall be appointed as a departmental management agent

(3) The appointment of the Departmental Management agent shall be subject to approval of the Assistant Excise Commissioner.

S.Rule 5 Assumption of management in the middle of a period of contract.

If any necessity arises for placing a shop under departmental management in the middle of a period of contract, notice shall be issued to the licensee, or his legal representatives in cases where the necessity to place the shop under departmental management has arisen due to the death of the licensee, about the intention to take over the shop under departmental management. There shall be no gap, as far as possible, between the assumption of management from the licensee or his legal representatives and placing the shop under departmental management.

S.Rule 6 Notice to tappers.

When a toddy shop is proposed to be placed under departmental management, notices shall be issued to the tappers attached to that shop prohibiting further tapping. Written intimation of such notices shall also be given to the owners of the marked trees. If, however, the tappers come forward to take up the shop under departmental management running of the shop may be entrusted to them on collection of the prescribed tree-tax and departmental management fee.

S.Rule 7 Departmental management agent when permitted to purchase toddy from other shops.

A departmental management agent may be permitted to purchase toddy required for his shop from other licensed shops only when there is no tapping for his shop or when the toddy obtained from the licenced tappers attached to his shop is not sufficient to meet the demands of the shop.

S.Rule 8 Departmental Management fee.

(1) ¹[The departmental management fee for arrack, toddy and foreign liquor shops] shall not be lower than the daily average of the rental last fetched for the shop. When the shop is placed under departmental management at the beginning of a contract period without its rental value being fixed either by auction or by negotiation, the rate of departmental management fee shall be fixed on the basis of the daily average of the ²[upset price fixed for each shop / group of shops for the said contract period]

⁶[Provided that the rental for the toddy shops entrusted with the workers committee as departmental management agent will be as fixed by the Government from time to time.]

(2) ³[(a) For the period under which arrack shops are under departmental management the departmental management agent shall either purchase or import rectified spirit from the distilleries in the State or from the distilleries in other States. He can also pu

S.Rule 9 Payment of tree tax by tappers under certain circumstances.

(1) When a toddy shop is placed under departmental management at the beginning of a contract period and before the contractor is permitted to take up the shop, the tappers attached to the shop for the preceding half-year and who wish to continue tapping for the Shop may apply for tree-tapping licence. The first instalment of tree-tax payable under the Tree Tax Rules, 1959, shall be paid by the tappers and the licence shall be issued only for the period up to the due date of the next instalment of tree tax. The licence may be extended for the rest of the period only on payment of the next instalment.

(2) When a contractor is installed in business no tree-tax shall be payable for the trees for which the tappers have already paid the tax. But further installments of tree-tax shall be payable by the contractor.

(3) The tappers shall be entitled to collect the tree-tax also from the departmental management agent along with cost of toddy.

(4) When a shop is taken ov

S.Rule 10 Collection of departmental management fee.

(1) No departmental management agent shall be entrusted with the management of a shop before fixing the departmental management fee and its collection in advance. The advance shall be for not less than seven days and for not more than fifteen days, at a time. ⁶[In the case of arrack, the advance shall be for not less than 30 days except in the month of March and in the month of March the departmental management fee can be collected for the remaining days of that month.]

(2) The Excise Inspector shall issue to the departmental management agent a temporary licence to conduct the shop for the period for which the departmental management fee has been paid.

(3) The Assistant Excise Commissioner may, for reasons to be recorded in writing and after giving an opportunity to the departmental management agent to represent his case, cancel the licence and in that event the proportionate fee shall be refunded.

S.Rule 11 Shop to be closed when no Departmental management agent available.

If it is not practicable to secure any departmental management agent for running the shop on departmental management at reasonable rates of fee, the shop shall be closed and in case such shop is a toddy shop, the tapping shall be effectively stopped and the fact reported by the Excise Inspector to the Assistant Excise Commissioner, on the same day.

S.Rule 12 Report to be made by the Excise Inspector.

When a shop is placed under departmental management, the Excise Inspector concerned shall, on the same day, forward a report to the Assistant Excise Commissioner showing the date from which the shop is placed under departmental management, the rate of departmental management fee, full name and address of the departmental management agent and in the case of an arrack shop, ⁷[x x x x], he shall maintain a register showing the name of the shop, the name of the original contractor, the name of the departmental management agent, the reasons for placing the shop under departmental management, the rate of departmental management fee, the amount collected and the details of remittances and of any adjustment towards kist.

S.Rule 13 8[Departmental Management fee to be given credit of.

The departmental management fee collected from a shop while it was under departmental management due to default of payment of security, kist, excise duty etc., shall be liable to forfeiture:

Provided that where the licensee dies during the currency of a licence, the amount collected as departmental management fee may be credited towards his kist amount.]

S.Abkari Shops Departmental Management (Amendment) Rules, 2025 All Amendments incorporated at appropriate place

GOVERNMENT OF KERALA Taxes (G) Department NOTIFICATION
G. O. (P) No. 184/2025/Taxes.	Dated, Thiruvananthapuram, 7th November, 2025 21st Thulam, 1201.
S. R. O. No. 1316/2025 In exercise of the powers conferred by section 29 of the Abkari Act, 1 of 1077, the Government of Kerala hereby make the following rules further to amend the Abkari Shops Departmental Management Rules, 1972 issued by notification under G. O. (Rt.) No. 520/72/TD dated 28th August, 1972 and published as S. R. O. No. 459/72 in the Kerala Gazette Extraordinary No. 35 dated 5th September, 1972, namely:--