GANDHINAGAR, India — The Gujarat government has granted licenses to 32 hotels in Ahmedabad and Gandhinagar to sell liquor under the state’s regulated permit system, generating more than ₹116 crore in revenue over the past two years, officials said during the Budget Session of the state legislature.
The information was disclosed in a written response by the minister in charge of the Prohibition and Excise Department to a question raised in the Gujarat Legislative Assembly. According to official figures, licensed liquor sales at these hotels generated approximately ₹116.39 crore between January 2024 and January 2026.
Gujarat remains one of the few Indian states with a long-standing prohibition policy that bans the sale and consumption of alcohol for the general public. However, the state allows limited exemptions under the Gujarat Prohibition Act.
Under the current system, select star-rated hotels and approved establishments may obtain licenses to serve alcohol to individuals holding valid permits. Permits are typically issued to non-residents visiting the state, foreign nationals, individuals with medical grounds, and other categories approved by authorities.
Licensed hotels are required to maintain detailed records of sales and ensure alcohol is served only to eligible permit holders. The Prohibition and Excise Department oversees compliance and collects revenue through licensing fees and excise duties.
Opposition legislators have questioned the expansion of licensed establishments and the consistency of enforcement under the prohibition framework. Government officials, however, have maintained that all licenses are issued within the legal provisions of the Act and operate under strict regulatory oversight.
The disclosure has renewed debate over Gujarat’s alcohol policy, as the state continues to balance its prohibition principles with tourism, hospitality and revenue considerations in major urban centers.
