High Court nod for closure of 700 liquor bars in Kerala

KOCHI: In a shot in the arm for the Congress- led UDF government, which has set a goal of total prohibition by 2023, the Kerala High Court today held as valid its new excise policy paving the way for closure of 700 liquor bars attached to hotels in the state.

However, the court allowed 33 bars in four-star and heritage category hotels to function though the state government had banned bars in all hotels below the five-star status. Twenty bars in five-star hotels were allowed to function by the court.

The judgement was passed by Justice Surendra Mohan on a batch of petitions by Kerala Bar Owners against the state government's August 22 decision to close down bars attached to hotels below five-star category.

The ruling UDF had adopted the new liquor policy with view to reducing the availability of liquor in the state to achieve its goal of 'total prohibition by 2023'.

Justice Mohan said the excise policy for 2014-15 was formulated on the basis of judgements of high court and the Supreme Court and report of a one-man commission and recommendation of Tax Secretary of the state.

The court also relied on the apex court verdict that state would not deny bar licences to hotels with the classification of four star and above, the judge said.

He held that no materials had been placed before it to justify the conclusion that the August 22 policy was not supported by a decision of council of ministers.

In the absence of such materials, contention of bar hotels was rejected, the judge held.

The bar owners had approached the court contending that the government's decision to close the bars was taken in 'haste' and would be counter productive as it would lose substantial revenue from Abkari (excise) business, besides impacting tourism.