Special licence to serve liquor should not be used for sale: HC

The Madras High Court on Wednesday directed the State government to ensure that the licences to be issued to organisers of national or international events at stadia, conference halls and convention centres to possess and serve liquor to the guests are not used to indulge in sale of liquor, either directly or indirectly.

Chief Justice Sanjay V. Gangapurwala and Justice D. Bharatha Chakravarthy said since the special licence regime permitted only possession and serving of liquor and not sale as such, the organisers should not end up indulging in indirect sale by offering complimentary liquor bottles with entry tickets.

They made it clear that those issued with the special licence should not end up selling liquor either as a compliment or as an incentive. The judges further ordered that serving of liquor to the guests, by the special licencees, should take place strictly within a closed enclosure.

The Bench directed the Home, Prohibition and Excise department to depute its responsible officers in the venue to monitor that the special licencees comply with the conditions scrupulously. The interim orders were passed on a public interest litigation petition filed by K. Balu, president, Advocates Forum for Social Justice, challenging a Government Order issued on March 14, 2024 for introducing the special licence regime by amending the Tamil Nadu Liquor (Licence and Permit) Rules, 1981.

Assailing the amendments made to the statutory rules, Senior Counsel N.L. Rajah contended that they were ultravires the provisions of the Tamil Nadu Prohibition Act, 1937. He also argued that the amendments could not be brought into effect without placing them before the Legislative Assembly.

He said the law did not permit sale of liquor within specified distances from educational institutions and places of worship.

However, no such stipulation had been prescribed for obtaining the special licence to possess and serve liquor in stadia, conference halls and convention centres, he said.

On the other hand, Advocate General P.S. Raman contended that sufficient safeguards had been made.

He said the special licence would be issued only if the organisers submit a detailed sketch of the enclosed space within which liquor would be served and the number of guests who could be accommodated over there.

He also sought time to file a detailed counter affidavit to the writ petition, and the judges granted him time till April 18.