Dizzy over revenue loss prospects, Telangana moves Supreme Court
Hyderabad: The TS government has approached the Supreme Court seeking six-months for relocation of liquor outlets along National/state highways saying that the government issued licences are valid till September-end.
The government also sought clarity over whether highways passing through commercial areas can be termed as highways.
The SC had earlier issued orders to all states to relocate liquor outlets which are at a distance of 500 metres from highways by March 31, and from April 1, not to renew licences of vendors who fail to relocate.
Since the revenues earned from liquor vends remain the major source of income for the state exchequer, the government heads are exploring all options to ensure that the impact of SC orders are minimal on state’s finances.
The excise department submitted a report to the government highlighting the issues that need to be brought to the notice of the SC in its petition.
The department pointed out that the Supreme Court-appointed road safety committee had in 2015 recommended not allowing liquor vends within 100 metres from highways. However, in the latest judgement, the distance was increased to 500 metres, which would be very difficult to implement. It sought the distance be reduced to 100 metres as recommended earlier.
“If the licences of existing shops are cancelled from April 1, the state government will suffer huge losses. The licences were issued for a period of two years. The government has to forego the licence fee for the remaining six months from April to September, which could be about Rs 750 crore,” a senior excise department official said.
The survey conducted by excise department revealed that 1,117 liquor shops, 394 bars/ hotels and 11 clubs are within 500 metres from a highway and would be affected on account of SC orders.