Supreme Court of India(SCI)Upholds Kerala Govt's Liquor Policy Tuesday Dec 29,2015

Supreme Court upholds Kerala govt's policy restricting bar licences only to five-star hotels

In a big jolt to bar owners in Kerala, the Supreme Court on Tuesday Dec 29,2015 upheld the Kerala Government's policy to close down all bars and allow liquor to be served only in five star hotels.

The SC passed the order on the petitions by Kerala bar owners, who had challenged the liquor policy claiming it to be discriminatory.

In a historic judgment confirming the State’s right to impose even an “unreasonable” ban on sale of liquor if the move benefits public health, the Supreme Court on Tuesday upheld the liquir policy of Kerala government restricting sale of alcohol to only five star bars.

A bench of Justices Vikramjit Sen and Shiva Kirti Singh upheld the State's argument that even “unreasonable restrictions” by the State cannot be challenged by liquor traders. 

The Kerala govt. had submitted that liquor traders cannot protest the “unreasonableness” of the ban on all category of bars except those in five star hotels as they have no right to protection to practise their trade under Article 19 (1) (g) of the Constitution.

The court has agreed with the State’s argument that liquor traders have no business to intervene in the policy prescriptions of the State government.

“Policy prescriptions are attempts by the State... an experimentation... which will be met with partial success or failure or complete failure or success. A policy is based on the available situation. We cannot foresee all possible situations. But it is our right to endeavour for a liquor-free Kerala,” senior advocate Kapil Sibal had argued for the State.

Kerala government's new liquor policy had resulted in the shut down of over 300 bars in the state

In August 2014,the Kerala government has issued an order giving effect to the new liquor policy. Accordingly, the bar licence issued to all hotels excluding those with five-star rating will be cancelled. Outlets of the Kerala State Beverages Corporation and Consumerfed will be closed down at the rate of 10 per cent every year.

A cess of five per cent will be levied on liquor to fund a special scheme, named Punarjani 2030, to rehabilitate bar employees and alcohol addicts.

On October 30, 2014, the Kerala High Court had upheld the the state government's decision to close down more than 700 bars, but had exempted heritage and five-star hotels.

 

 

 

The Justice M. Ramachandran Commission, appointed by the United Democratic Front (UDF) government to look into the Kerala Abkari policy, has recommended introduction of liquor with low alcohol content and a change in the timing of bar hotels to bring down the consumption of liquor.

 

In a report submitted to the government, the commission said that after the lifting of prohibition in 1967, there had been a steady increase in the number of consumers, especially among the young, and the statistics indicated that the graph of consumption was steadily rising. The social habits of new generations and the increase in the income among the working class had substantially made contributions to the situation.

As far the FL3 bar licences were concerned, the youth had “monopoly at the FL3 licence.”

A number of persons apparently in the lower rungs of society were seen waiting for opening of bars in the morning.  FL3 pertains to licence for sale of Foreign Liquor in Bar Hotels for consumption within the premises

Bars only at 27 five-star hotels 

With the Supreme Court endorsing the new liquor policy of the Kerala government, bars will be allowed to operate only at 27 five-star hotel properties in the State.

 

This means that at least five of the 14 districts – Kannur, Wayanad, Thrissur, Palakkad and Pathanamthitta – will not feature a single one.

Apart from this, 33 club properties will be licensed to serve liquor while 806 beer and wine parlours will be allowed to operate in the State.