The rules, titled The Uttar Pradesh Excise Composite Shops (Settlement of Licences) Rules, 2025, introduce a structured system for settlement and operation of composite liquor shops. Key provisions include:

• Composite shops will operate under licence Form F.L.-5DB for retail sale in sealed bottles for off-premises consumption.
• Licences will be settled through e-lottery, e-renewal, or e-tender as specified by the State Government. Not more than two shops may be allotted to any individual across the State.
• Strict eligibility conditions: only Indian citizens above 21 years may apply; firms, companies, wholesale dealers, distilleries, government employees, and advocates are barred. Applicants must also provide solvency certificates and affidavits of good character, free from criminal or mafia activities.
• Licence fee and security (10% of licence fee) must be deposited promptly, failing which penalties and cancellation apply. Daily penalty of ₹2,000 applies for late security deposit, with 15 days’ limit.
• Minimum Guaranteed Revenue (MGR) is introduced for both beer and foreign liquor, ensuring a baseline revenue for the State. Licensees must lift stock equivalent to monthly/quarterly MGR; failure triggers additional security deposits and risk of cancellation.
• Shops will be geo-tagged and geo-fenced under Excise Department monitoring, following the Excise Number and Location of Shops Rules, 1968.
• In case of death of a licensee, legal heirs or nominees may continue if otherwise eligible.

The new rules replace earlier fragmented practices with a unified framework aimed at transparency, accountability, and revenue assurance.