Alcohol Ban Is No Longer Applicable Within Cities, SC Clears: Let The Celebrations Begin!

Highway Alcohol Ban In Cities

The Financial Express and all major newspapers reported yesterday that “The Supreme Court bench of Chief Justice JS Khehar and Justices DY Chandrachud and Nageswara Rao made the clarification yesterday that the liquor ban on highways did not apply to licensed establishments falling within municipal areas.” So all we can say is, let the celebrations begin! With a number of restaurants and bars having to shut down in the interim period, we can say that this news of highway alcohol ban in cities brings some relief to us thirsty souls. 

What The Supreme Court Order Says

“The purpose of the directions contained in the order dated 15 December 2016 is to deal with the sale of liquor along and in the proximity of highways properly understood, which provides connectivity between cities, towns, and villages. The order does not prohibit licensed establishments within municipal areas. This clarification shall govern other municipal areas as well. We have considered it appropriate to issue this clarification to set at rest any ambiguity and to obviate repeated recourse to IAs before the Court” stated an order by a Supreme Court bench, headed by Chief Justice Jagdish Singh Khehar, as reported by the Financial Express. 

Andaman and Nicobar and Arunachal Pradesh have been exempt from this rule as well. 

And Of Course, The Liquor Shares Shot Up!

United Spiritsgained 5.51% to the day’s high of Rs 2,607.9 while United Breweries rose 1.93% to Rs 820. The Globus Spirits and Tilaknagar Industries which advanced 14.88% and 7.63% respectively. Other winners of the day: Khoday India (up 5%), Ravi Kumar Distilleries (up 3%), Chambal Brewery (up 4.73%), Pioneer Distilleries (up 3.5%), IFB Agro (up 0.6%), Som Distilleries (up 4.6%), GM Breweries (up 7.4%), Associated Alcohol and Breweries (up 10%), Radico Khaitan (up 2.16%), Pincon Spirit (up 10%), Jagatjit Industries (up 4.6%), Empee Distilleries (up 3.15%) and Winsome Breweries (up 3.5%).

What Was The Initial Ban?

The Economic Times also reported that “[…] with this order, the industry expects 85% of the bars and restaurants to start business. “Now licenses will be renewed and in another two to four weeks the industry will settle down and get back to business,” said Riyaz Amlani, president of National Restaurant Association of India. He added that between April -when the ban was implemented – and now, the hospitality industry has lost more than Rs 1000 crore worth of business.” 

This order banned the sale of liquor within 500 meters from the edge of the national and state highways which came into effect from 2 April 2017. So you can expect things to start getting back to normal, soon. So bottoms up? 

Read the full story by the Financial Express and Economic Times

Photo Courtesy Of: Pixabay

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