In a significant policy shift aimed at boosting its global business appeal, the Gujarat government has unveiled a major relaxation of prohibition norms within the Gujarat International Finance Tec (GIFT) City. The move, seen as a festive season boon for employees and visitors, simplifies liquor access for non-residents and expands permissible service areas.
Key Changes for Visitors and Employees
The notification, issued on a recent Saturday, formally introduces the category of 'external persons'. This group is defined as individuals not from Gujarat, holding a photo ID from another Indian state or being a foreign national. The biggest change is that such visitors can now consume alcohol within GIFT City premises simply by showing a valid photo ID, eliminating the previous requirement for a separate liquor access permit.
For employees working in GIFT City, the process to obtain a liquor access permit has been streamlined. Employees can now get a permit by submitting Form A1 based on their company ID card, removing the earlier mandatory step of obtaining authorization from their company's HR department. A source familiar with the development confirmed, "An employee can get his permit and host up to 25 guests without extra approvals."
Expanded Service Areas and Group Permits
The relaxed framework now permits liquor service across a wider range of hotel and restaurant areas. This includes lawns, poolside areas, terraces, and even private hotel rooms, provided the outlet holds the requisite FL-III licence. Previously, consumption was restricted to designated 'wine and dine' zones for permit holders.
The notification also clarifies that diners without permits can freely enter these areas for food. Furthermore, a new group permit structure has been introduced. Companies can now organize events and obtain a single permit covering all guests, which will be issued by authorized GIFT City officials.
Boosting Global Competitiveness and Hospitality
Sanjay Kaul, Managing Director and Group CEO of GIFT City, described the notification as a pragmatic step. He stated it supports GIFT City's role as an international financial district by addressing the operational needs of global institutions and professionals within a regulated framework. The objective is to enhance the zone's competitiveness as a global financial centre.
Industry stakeholders have welcomed the move, linking it to Gujarat's larger ambitions of hosting international events like the Commonwealth Games in 2030 and the Olympics in 2036. Narendra Somani, President of the Hotels and Restaurants' Association (HRA) in Gujarat, called it a positive move that sends the right signal to the hospitality and real estate sectors. He advocated for a controlled relaxation of liquor laws beyond GIFT City to align with international norms and generate state revenue.
It is important to note that the minimum drinking age remains 21, and all consumption continues to be regulated under the Gujarat Prohibition Act. The government has also clarified that companies will no longer be held responsible if an employee leaves GIFT City without submitting their permit.
