Supreme Court stays Rajasthan HC order for removal of liquor vends within 500 metres of highways

The Supreme Court on Monday stayed the Rajasthan High Court’s order directing the State to remove or relocate all liquor shops within a 500-metre limit from national or State highways due to a surge in fatal road accidents.

A bench of Justices Vikram Nath and Sandeep Mehta, which issued notice on multiple pleas filed by liquor vendors and the Rajasthan Government, however, said that the High Court’s “concern was genuine” and the Government may consider it while formulating its liquor policy in the future.

“Issue notice. The effect and operation of the impugned order is stayed,” the Supreme Court ordered.

Solicitor General Tushar Mehta, appearing for the state Government, said that the Supreme Court had earlier directed that there should not be any liquor vends within 500 metres of national and state highways, but a problem arose where these roads passed through the city.

“The order was later clarified that within municipal limits, there would not be any such ban on liquor shops,” he said.

Senior advocate Mukul Rohatgi, appearing for liquor vend owners, said that the High Court erred in passing the order without hearing the parties, and sought a stay on the directions.

He submitted that the High Court was dealing with an issue pertaining to one village, Sujangarh but went on to pass an order qua the entire state without even hearing other parties.

Justice Mehta said that the High Court exercises jurisdiction throughout the State.

Rohatgi contended that the High Court’s view was contrary to the Supreme Court’s direction that there was no such ban within municipal limits. “But the (HC) judge still says there will be a ban, irrespective of the Supreme Court’s direction,” he said.

On November 24, 2025, the Jodhpur bench of the High Court, taking note of the increasing number of accidents on the highways on account of alcohol consumption, directed the state to remove or relocate all liquor shops falling within the restricted limit of 500 metres from a national or state highway, within two months, irrespective of them falling under any municipal areas, local self-governing bodies or statutory development authorities.

It had also come down heavily upon the state for misusing the limited discretionary leverage granted by the Supreme Court in granting permissions to liquor shops along the national and State highways. The High Court passed the order on a PIL filed in 2023 that highlighted a steep rise in the cases of drunken driving in Rajasthan.

It referred to the 2016 verdict of the Supreme Court in the case of State of Tamil Nadu versus K Balu, in which it was directed that no liquor shops shall be situated within 500 metres of the outer edge of a national or state highway. However, in 2017, the Supreme Court clarified that the order did not prohibit licenced liquor vends within the municipal areas and discretion was given to the state to determine whether the same principle should be extended to areas covered by local self-governing bodies and statutory development authorities.

The Rajasthan Government has filed an affidavit in the High Court stating that the State had permitted the operation of 1,102 liquor shops alongside national and state highways as they fall within municipal areas or local bodies and contribute Rs 2221.78 crore in revenue.

Taking note of the affidavit, the High Court had said that the constitutional objective of safeguarding public life and safety cannot be subordinated to revenue considerations, and a careful balance must be struck wherein fiscal interests do not override the paramount requirement of protecting human life and ensuring road safety.