Orissa HC declines to interfere in govt policy to check growth of IMFL ‘on shops’

The court held that the govt’s policy decision has been taken considering larger public interest
Orissa High Court.
Orissa High Court.(File Photo)

CUTTACK: The Orissa High Court has refused to interfere in the government’s policy decision under the State Excise Policy 2023-24 to not grant new licence for opening ‘liquor on-shops’ in rural areas and restrict grant of such licence to only star hotels and hotels having a minimum number of rooms in urban areas.

The division bench of Chief Justice Chakradhari Sharan Singh and Justice MS Raman approved the Excise department’s rejection of applications for grant of licence for new IMFL ‘on shop’ as it has been taken considering larger public interest to ensure better regulation and to curb the growth of ‘on shops” in the entire state. On shops are where people can buy and consume liquor on its premises.

The Excise department had cited the new policy and rejected pending applications related to excise year 2022-23 on May 29, 2023. The rejection order was challenged in as many as 35 petitions.

The bench said the applications were rightfully considered with reference to the law prevailing as on the date of consideration and not with reference to the date of submission of the applications and disposed of the batch of petitions on Wednesday. The petitioners wanted refund of of their application fees Rs 1,10,000 after rejection of their applications.

The state counsel submitted that there is no provision envisaged for refund of application fee in the event the same is rejected. However, the counsel conceded that if direction is granted to the state government, such refund of fee would be considered in its own perspective.

Taking it on record, the bench left it open for the petitioners to approach the principal secretary Excise department and claim for refund of application fee of Rs 1,10,000 within 15 days. The bench expected the principal secretary to consider the refund plea and take a decision at the earliest preferably within a period of three months.

However, it mentioned in the March 27 judgment that barely seven working days are left excluding intervening holidays till March 31. Even if the state government is directed to reconsider the feasibility to grant license to the petitioners it would be a futile exercise as by the time the ‘on shop’ license is granted, the excise policy of financial year 2023-24 would have lapsed, it observed.

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