Kerala bar owners lose out in legal battle with govt

Thiruvananthapuram

The Supreme Court yesterday upheld a policy decision by the Kerala government to stop renewal of bar licences in the state, except for five-star hotels, dealing a severe blow to hundreds of bar hotels in the state.

That means Keralites who would like to welcome the New Year with an alcoholic drink will have to do that at some five star hotel, or at home. Members of some 33 clubs that can continue to serve liquor will also not be affected.

The verdict came at the end of nearly two years of wrangling between the state government and the liquor bar owners, which saw the case being fought between the two parties through various courts. The verdict was given by a bench comprising justices Bikramjit Sen and Shivkeerthi Singh.

The verdict means that only the bars in 27 five-star hotels will be allowed to function in the state, leaving roughly 700 other bars to shut shop. The decision is expected to affect nearly 10,000 bar hotel staff across the state.

The apex court clarified that the bar hotel staff who have been made redundant could approach the state high court. The court had earlier observed that liquor sale was not a fundamental right.

Liquor bar owners had argued that permitting only five star hotels to serve liquor was a discriminatory policy. But the state government could successfully argue that its policy was meant to bring about prohibition in a phased manner. The court also approved the government’s stand that five-star bars were allowed for the benefit of the tourism sector in the state.

Defending the ban on serving liquor at other hotels, the Kerala government said liquor was available at retail outlets and people can buy and drink at home.

The liquor bar case had caused much ruckus in Kerala politics over more than a year.

A bigger fallout happened for the United Democratic Front government when the acting president of the liquor bar association, Biju Ramesh alleged that his association had paid a bribe of Rs 10 million to former finance minister K.M. Mani to facilitate the opening of closed bars. Mani denied the allegation, but had to resign following media pressure and political compulsions.

Following Tuesday’s verdict a liquor bar association official, ‘Elegance’ Binoy said there was every possibility now that Biju Ramesh’s allegation would be proved right.