Southern States - Tamil Nadu   

Liquor retailers challenge licence termination

By A. Subramani

CHENNAI JULY 15. Hundreds of licensed retail liquor vendors have approached the Madras High Court challenging three Government Orders which seek to terminate their licences by July-end despite their holding permits to continue business till July 2004.

The impugned July 8 notifications, issued by the Prohibition and Excise department, effectively repeal Rule 14 of the Tamil Nadu Liquor (Retail Vending) Rules 1989 governing renewal of licences.

The other GOs enhance the privilege fee of shops in peripheral areas of Corporation and municipalities, apart from increasing the number of Indian-made Foreign Liquor shops for the entire State from 6,000 to 7,000.

According to the GOs, the decision to repeal Rule 14 — which would mean that the licences, valid till July 2004, would be terminated by this month-end itself — was taken on an `apprehension' that the vendors might not renew a large number of licences `in view of the increase in the number of shops and the privilege amount'.

(As per the GOs, the last date for submitting applications for IMFL licences is July 18. The date for draw of lot is July 27).

The petitions, filed by the Tamil Nadu IMFL Wine Merchants Association as well as individuals, contended that the Government had violated its own statutory promise that the shops were allotted in June 2001 for a block period of three years.

According to them, when none of the petitioners had expressed his unwillingness to get the licence renewed, the `apprehension' in the minds of officials was only imaginary. The `apprehension' was invented only to introduce a new system "in order to facilitate some interested persons". ``If the Government apprehends that the existing shop licensees may not renew the licence, it would be seen that there is no guarantee for all 7,000 shops being sold under the new licensing system''.

Noting that changing the licensing pattern frequently would affect the overall vending business, the petitioners said the Government had increased the number of shops, introduced cheap liquor vending and still insisted on the vendors lifting the agreed quantity of liquor from the Tamil Nadu State Marketing Corporation.

The fixing of the privilege amount and the reclassification of shops in Corporation or municipal limits were also arbitrary and unreasonable. The quantum of business differed from area to area. In view of these circumstances, the petitioners wanted the July 8 GOs quashed. As an interim prayer, they sought to stay the operation of the impugned GOs.

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