Madras High Court orders closure of all TASMAC attached ‘Bars’ within 6 months

The Madras High Court has directed the Tamil Nadu State Marketing Corporation (TASMAC) to shut all bars that are attached to retail liquor outlets, in the state within six months. The court has said that purchasers of liquor from retail shops can consume it in their homes, or in any other private place.

Ruling that TASMAC has not control over these bars attached to the liquor shops, Justice Saravanan, who heard the case, said, “As per Section 4 of Tamil Nadu Prohibition Act 1937, no one could get a license to run bar with state-run liquor outlets by selling snacks/short-eats and collecting the empty bottles. The section says that a person who was found in an intoxicated state could be sentenced to three months of imprisonment or imposed with a penalty of Rs 1,000.”

He passed the order after dismissing a batch of writ petitions moved by license holders for the TASMAC attached bars for the period of 2019-2021. The petitioners wanted a direction to quash the recent notification of the government to call for fresh tenders to get bar licenses.

“We got the license to run bars in 2019 and the validity is for two years. However, due to the outbreak of the pandemic in 2020, we could not run the bar for 15 months. Therefore, we want 15 more months as concession time considering the loss which we incurred during the pandemic. However, the Tasmac gave only five months additional period to run bars for issuing tenders in favour of people close to the ruling party,” the petitioners argued.

The judge also pointed out the amendments made to the 1937 Act in 2003, that point out that TASMAC only have monopoly over wholesale and retail sale of liquor in the state, and that it (TASMAC) cannot run a ‘bar’ by itself. He also held that the power to grant license to run a bar can vest only with the licensing authority namely the Commissioner of Prohibition & Excise.

“The respondents TASMAC shall refrain from granting licenses/permits to the petitioners and others to do the support service or the business in the sales of short eats and collecting bottles for six months. The tenders awarded also can be recalled,” the judge concluded.

(With inputs from The Hindu)

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