Special licence to possess and serve liquor should not be used for direct or indirect sale, orders Madras High Court

Madras High Court directs State government on liquor licences for events, ensuring no sale, only possession and serving.

The Madras High Court on Wednesday directed the State government to ensure that the licences to be issued to organisers of national/international events at stadia, conference halls and convention centres to possess and serve liquor to the guests is 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 permits 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 sold for exorbitant prices.

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 screened from public view.

“No liquor, in whatsoever manner, shall be taken beyond the closed enclosure,” the Bench said and 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 without giving way for any violation.

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 pointed out the law does 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.