There is no merry after Christmas in Kerala. Tipplers, left high and dry in the State with the highest consumption of liquor in the country, found no succour from the Supreme Court on Tuesday as it upheld a Kerala Government’s decision restricting foreign liquor licences to five star hotels alone.
The SC decision thus dashed the last hope of around 800 bar owners who were impacted by the State Government’s diktat. They had been virtually out of business as the two-star, three-star and four-star hotels set up by them did not attract the usual flow of visitors who thronged their bars for a drink.
The Kerala Government intends making the State liquor-free in another 10 years.
Sharing the concern of the State, the bench of Justices Vikramajit Sen and Shiva Kirti Singh said, “The Court cannot be blind to the fact that a social stigma at least as far as the family unit is concerned still attaches to the consumption of alcohol…Banning public consumption of alcohol, therefore, in our considered opinion cannot but be seen as a positive step towards bringing down the consumption of alcohol, or as preparatory to prohibition.”
The court was surprised to learn that a small State like Kerala which boasts of 100 per cent literacy faced an acute social problem of being the State with the highest number of alcohol consumers. The liquor consumed in Kerala is the highest by any State in the country, constituting 14 per cent of the national consumption. Kerala has the highest per capita consumption of liquor at 8.3 litres while the national average is four litres.
It was in the light of these findings, the Kerala Government changed its Abkari Policy of 2014 and issued an order on August 22, 2014 restricting bar licenses to 20-odd Five-Star hotels in the State. In one sweep, it refused to issue any fresh or renew existing foreign liquor licences (Fl-3) for two-star, three-star, four-star or Heritage hotels. In addition, the State decided to phase out 10 per cent State liquor outlets every year in order to achieve a “liquor-Free Kerala” in 10 years. At present, there are 338 outlets of Kerala State Beverages Corporation and 46 outlets of Consumer Fed.
The apex court observed that the attempt to put curbs on liquor consumption in Kerala was not new as in the past, the State Government had experimented by refusing fresh Fl-3 licences to unstarred hotels, two-star and three-star hotels. At each occasion, the State’s policy was challenged till the Supreme Court which upheld the same. This time around, the State restricted bar licences to five-star hotels. The State argued that this exception was carved out to save tourism interests. Further, it was argued that 5-star hotels charge exorbitantly on liquor which will be a disincentive for its consumption.
The court agreed with the State’s argument and saved the State’s Abkari Policy from the challenge under Article 14 (non-discrimination). However, there were two issues on which the court sounded caution. The court said that the objective to ban liquor cannot be appreciated when there is unregulated permission to consume beer and wine, knowing that beer is preferred by the youth.
The court said, “If the sale of beer and wine…discloses an increase or if there is a trend towards serving beer of a higher alcohol content, the State will have to review its stand, failing which it would inexorably invite further litigation.” On a parting note, the court asked the State to ensure rehabilitation of workers who lose their jobs as a consequence of the State’s decision. Presently, the State is charging a five percent cess on liquor sold through public vends towards rehabilitation of such employees.