CHENNAI: As a potential first step in cleaning up liquor retailing in the state, the Tamil Nadu State Marketing Corporation (Tasmac) has ordered the immediate closure of all bars attached to its retail liquor outlets until further orders.
The move comes after the extended licence period for around 2,700 bars attached to the state-run outlets expired on June 30. While the corporation has ordered the closure of the bars, it is yet to announce whether the existing licences will be extended or fresh tenders will be floated.
A senior Tasmac official told TNIE that the issue was reviewed at a meeting chaired by Prohibition and Excise Minister K Vignesh on Wednesday. Amid the uncertainty, senior Tasmac officials have orally invited representatives of bar owners for a meeting on Thursday morning at the office of the Tasmac managing director in Chennai.
The discussions are expected to focus on the future of the bars, including the possibility of extending the present licences. Following the discussions with bar owners on Thursday morning, the Tasmac board is scheduled to meet later in the day.
Bar rental agreements not revised, says assn president
“The board will take a final call on whether to extend the existing bar licences for a limited period or keep the bars closed until fresh tenders are floated,” the official said. The decision is expected to bring clarity to lakhs of bar operators and employees, besides customers across the state.
The outcome of the meeting is likely to determine when the bars can resume operations. Until then, all bars attached to Tasmac retail liquor outlets will remain closed, affecting lakhs of customers who usually consume liquor at these premises.
Speaking to TNIE, Tamil Nadu Tasmac Bar Owners’ Association president N Anbarasan said the bars were originally awarded licences for the period from January 2024 to December 2025. After the licence period ended, the government extended the tenure by six months, citing the Assembly elections. The extended period ended on June 30, 2026.
“We have been urging the government either to float fresh tenders or extend the existing licences. Even a few days ago, we met officials and requested them to make a decision. They assured us that the licence period would be extended by another three months.
We expect the issue to be discussed at the Tasmac board meeting scheduled for Thursday,” he said. Anbarasan alleged that the Tasmac administration ordered the closure of the bars without giving prior notice to the licence holders. He further claimed that Tasmac did not revise rental agreements for the bar premises.
“If the government decides to close the bars permanently, then it should also consider the functioning of the retail outlets, as the bars are an integral part of the existing arrangement,” he said. The association has also sought the refund of its security deposit.
According to Anbarasan, the government is holding around `850 crore collected as deposits from operators of the 2,700 bars. “We will raise the issue of refunding the deposit amount and seek clarity on the future of the licences during the meeting with Tasmac officials,” he added.
Although the order was to come into effect on Wednesday, some bars were still seen to be operational that day since immediate implementation was not possible.
‘Govt holding Rs 850 crore’
According to TN Tasmac Bar Owners’ Association president N Anbarasan, the government is holding around `850 crore collected as deposits from operators of the 2,700 bars. “We will raise the issue of refunding the deposit amount,” he said