Tamil Nadu takes Rs 5000 crore revenue hit as 1000 TASMAC shops shut

Following the Madras High Court’s order on Saturday directing the State-owned TASMAC to shut liquor outlets situated close to National and State highways, Prohibition Commissioner
Image for representational purpose only
Image for representational purpose only

NAGAPATTINAM: Following the Madras High Court’s order on Saturday directing the State-owned TASMAC to shut liquor outlets situated close to National and State highways, Prohibition Commissioner and TASMAC managing director R Kirlosh Kumar has written to district administrations to comply with the ruling with immediate effect. As a result close to 1,000 shops were shut on Sunday, likely causing an annual revenue loss of Rs 5,000 crore to the state. 

When the Supreme Court in 2016 ordered the closure of liquor outlets near highways, 3,000 of 6,200 shops in TN were shut. However, the State took steps to convert State highways into district and panchayat roads and reopened the outlets. Challenging this, K Baalu, president, Advocates Forum for Social Justice, moved the HC seeking a direction to the government to close such shops based on which the court issued its order. Following this the Kirlosh Kumar forwarded a letter on Saturday to all Collectors, Superintendents of Police, and district TASMAC managers and around 1,000 such shops were closed on Sunday. 

“The Commissioner of Prohibition and Excise has directed to close all the retail vending shops which were opened in the urban areas (corporation, municipality and town panchayat) within 500 metres (if the population is 20,000 and above) and within 220 metres (if the population is less than 20,000) from the outer edges of National and State highways as well as service lanes along such highways with immediate effect,” Kirlosh Kumar’s order said.

He advised sales proceeds of these shops be kept safely in the TASMAC district manager’s office and remitted to the bank by April 30. “There were about 4,600 liquor outlets functioning till Saturday... nearly 1,000 were closed on Sunday. With this, the State would face a loss of Rs 5,000 crore,” TASMAC sources said.

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