An estimated 586 beer and wine parlours abutting National and State Highways in Kerala faced the risk of closure next fiscal.
Excise officials said the chances of these establishments getting their licence renewed after March 31 now solely hinge on how the Supreme Court (SC) would further interpret its weighty decision in December last banning the sale of liquor through licensed premises within 500 metres radius from the outer edge of such thoroughfares, including service roads.
If not, the only recourse open to liquor permit holders would be to relocate their hotels, a financially unsound prospect for many given the high land prices and the looming spectre of local resistance.
Several States, including Kerala, have approached the Supreme Court seeking clarification on whether the ban applied only to liquor takeaways or whether bars, beer/wine parlours and toddy shops come under its purview.
Hotel industry stance
The hotel industry was of the view that the main body of the judgement applied only to retail outlets, a State-monopoly in Kerala.
However, the State government debunked their view on February 7 when Additional Chief Secretary, Taxes, P. Mara Pandiyan denied a 5-star classified hotel in the capital bar licence on the ground that it was situated within 500 m of the outer-edge of a SH/NH.
Officials said at least 11 of the 31 5-star bar hotels in Kerala stood to lose their licences if the SC order was implemented. So did 18 private members’ clubs, three of them in the capital.
207 to be relocated
Out of the 306 State-run liquor retail outlets, at least 207 have to be relocated. Excise enforcers said the government would seek more time from the SC to shift the outlets. It has submitted that space was at a premium in Kerala and pleaded that toddy, a traditional sector, wine and beer be not deemed as liquor.
The government has also feared that the closure of liquor outlets would open the door for the large scale entry of bootleg alcohol into Kerala.
