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Retail liquor vending till midnight

By Our Special Correspondent

CHENNAI NOV. 5. Once State Government agencies take over retail vending of liquor, the shops will be open from 8 a.m. to midnight, the Chief Minister, Jayalalithaa, announced in the Assembly today.

Now, the privately-run shops are open from 8 a.m. to 11 p.m.

Like in private retail trade now, bars will be opened only in urban areas and not in rural areas, she said replying to a special calling attention motion. A Bill seeking to replace the ordinance on the government taking over the retail liquor trade was introduced yesterday. The Government was doing so since the retailers had formed cartels, leading to a huge loss of revenue to the Government.

Explaining the rationale behind the government decision, the Chief Minister said that after the AIADMK came to power in 2001, the auction procedure was replaced with a system of draw of lots. In 2001-2002, 5,512 shops were allotted and a privilege amount of Rs. 548.79 crores was realised, a significant increase over the number of shops allotted the previous year.

The next year, the total number of shops was fixed at 7,000 (up from the earlier 6,000) but only 5,300 were allotted. The cartels were active that year and tried to defeat every government move.

Hence, the Government brought in the selection system this year. But the response was very poor. Though 35,099 applications were sold, only 962 were filled in and submitted. Even after the Government granted time extension, 45 per cent of the shops (3,858) had no takers.

The Prohibition and Excise Minister, O. Paneerselvam, said newly-formed cooperatives would not be allowed to run retail outlets. He gave this assurance after C. Gnanasekaran (Congress) pointed out that it took only seven persons to form a society as per the rules.

The Government, which claimed that cartels were responsible for its revenue loss, should pass an order that cooperatives formed after the Government brought in the ordinance be barred from running retail liquor shops.

K. Ponmudi (DMK) contended that liquor sale through the cooperatives went against the directive principles and defeated the principles behind the cooperatives. Ms. Jayalalithaa retorted, saying it was the DMK Government which initiated the process of retailing liquor through the cooperatives. Mr. Ponmudi said the AIADMK Government had annulled many a decision of the DMK Government. What prevented its annulling this one also? He said the government takeover would lead to unhealthy monopoly. Ms. Jayalalithaa said there would be no monopoly and that the Tamil Nadu State Marketing Corporation would sell liquor in urban areas and the cooperatives in rural areas.

G.K.Mani (PMK) condemned the move to open retail outlets in rural areas and said it was ironical that the Government chose to keep the liquor shops open till midnight when the police in Chennai and some other cities insisted that hotels close at 11 p.m.

L. Santhanam (Forward Bloc) requested the Chief Minister to consider giving jobs to unemployed youth in these cooperatives. Ms. Jayalalithaa intervened to say 22,000 unemployed youths would get jobs because of the government move.

The Finance Minister, C. Ponnaiayan, said it had to be assumed that the loss during the DMK years occurred because the syndicates in operation had connections with that party.

At this, the leader of the Opposition, K. Anbazhagan, said generally syndicates were not permanent bodies and comprised individuals who came together for specific purposes.

Their formation was dictated by local circumstances. It was unlikely that either the DMK or the AIADMK had a direct link with these syndicates or cartels.

Mr. Gnanasekaran suggested that the best way out was bringing in total prohibition.

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