Andhra Pradesh

Court strikes down new excise policy

By Our Legal Correspondent

HYDERABAD, FEB. 24. Several important aspects of the new excise policy, recently announced by the State Government, were struck down by the Andhra Pradesh High Court today.

Justice L. Narasimha Reddy, who delivered the 50-page judgment, allowed a batch of more than 150 writ petitions filed by nearly 2000 retail wine shops.

The G.O. concerned was issued by the State Government on February 7 last announcing the new policy for the excise year 2005-2006. This G.O. prohibited the renewal of the existing licences of retail wine shops. By virtue of the new policy the number of retail shops will go up from 6800 to 7500.

The petitioners challenged the new policy on various grounds. It was contended that the policy, which barred renewal of the existing licences and which declared that the new licensees would be chosen by lots from those who submitted applications, was arbitrary. Justice Reddy felt that the clause which prohibited the renewal of the existing licences was arbitrary, unreasonable and hence unconstitutional. The judge did not appreciate the stand of the Government that it had formulated the policy to provide liquor to the common man at an affordable price. The Judge said: "In the name of providing liquor to the `common man' at affordable prices, the State has forgotten or neglected the plight of the `common woman' and `innocent' children."

Revenue concept

While dealing with the action of State Governments, the judge lamented: "In the hunt for easy money in the form of licence fee, and commission on sale of liquor, the State has not hesitated to sacrifice the lives and health of millions of gullible people, welfare of equal number of families and the corresponding dignity and decency in society."

The judge said that the intervention by the courts in policy maters, that too in the business in intoxicants, was very restricted. He said that when the Government spelt out reasons for such policy, courts were entitled to examine whether the reasons could really sustain the policy.

Dealing with concept of revenue, the Judge further said that the fact that every political party, in every election manifesto swore to bring about prohibition either in phased and gradual manner or at once, disclosed their determination to achieve the same.

The court further said: "In these days of acute drought and phenomenal unemployment, indiscriminate opening of wine shops and bars may bring with them the corresponding amount of damage to society in terms of values of life, rural economy and vulnerability of human health. At a time when hundreds of farmers are committing suicide, villagers are migrating for livelihood and women, even in coastal areas, are required to walk kilometres to fetch drinking water, it has to be thought over as to how far it is proper to promote sale of liquor by opening new shops and bars."

According to our Special Correspondent, the Government is planning to go in for appeal against the judgment.

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