States left high and dry by SC ban
Staring at huge revenue losses, state governments look for ways to circumvent the apex court’s order
150 restaurants, bars and other commercial establishments in the tricity. In Chandigarh, there are 88 such establishments, of which 63 are bars and 25 are beer bars,” Singh added.
MUMBAI RESTAURANTS WEAR DESERTED LOOK
Approximately 500 restaurants and bars serving liquor within 500m of the Mumbai’s highways remained shut on Sunday. Many regular visitors to the wine shops, bars and restaurants along the western express, eastern express and national highways said they were shocked to learn that the joints refused to serve liquor.
Following the Supreme Court’s clarification that its order applied to all establishments including bars — thus nullifying the state government’s attempt to exempt these bars from the directive — the state excise department ensured that the order was fully enforced.
The department swung into action on Saturday and sealed godowns in which liquor was stored. Hotels were given the option to serve only food and not liquor if they wished to operate.
Adarsh Shetty, president, Indian Hotels and Restaurant Association (AHAR), said, “Around 500 hotels in the suburbs fall within this restricted zone. They have all shut. The hoteliers have invested a lot into their business and are facing hard times.”
The SC order will hit 15,699 establishments and cost the government ₹ 7,000 crore every year.
RAJASTHAN LOOKS TO MINIMISE LOSS
The Rajasthan government has declared state highways passing through habitated areas as urban roads or district roads to circumvent the SC order.
Like in most states, excise duty is one of the biggest revenue sources for Rajasthan. In 2015-16, the state earned ₹6,700 crore from excise duty and it fixed a target of ₹7,300 for 2016-17. In a bid to avoid the loss, the state’s public works department (PWD) recently issued an order for de-notification of 190 km of 21 state highways measuring 3,029 km as urban roads or other district roads.
GOA CM PARRIKAR GIVES ASSURANCE
Goa’s Excise Department on Saturday did not renew the licences of over 3,000 liquor vends dotting the national highways. Chief minister Manohar Parrikar, however, assured that efforts would be made to ensure that the livelihood of affected traders is not compromised.
At a meeting chaired by Parrikar and attended by chief secretary Dharmendra Sharma and top excise and finance department officials, a possibility of relocating liquor businesses from the close proximity of national highways to the interior areas was also discussed.
KERALA EYES WAYS TO BYPASS SC ORDER
With its major revenue share drying up, Kerala is weighing options such as de-notification of state highways to district highways to get around the Supreme Court order. The state is also considering approaching the apex court for a three-month exemption. Out of the ₹40,000 crore annual revenue of the state, ₹10,000 crore is from liquor trade. Kerala has one of the highest per capita consumption of liquor in the country — 10.2 litres annually against the national average of 5.6 litres.