Chennai: Star hotels within municipal limits can open their bars

Chennai: At last, it is cheers to the hotel industry in Chennai. The industry, mauled by a recent Supreme Court order banning the bar licence along the city highway and closure of bars attached to star hotels located with 500m of state and national highways from April 1, on Friday got a respite with the state government issuing a clarification to the district collectors. A government circular issued by R. Kirlosh Kumar, commissioner, prohibition and excise dated September 1, suggested that district collectors may permit all (FL 1 to FL 11) licensed establishments which are located within the limits of municipal corporations, municipalities and town panchayats.

The letter also sought a compliance report from all the district collectors. The letter also quoted the opinion of the advocate general explaining that there is no longer any prohibition in respect of locating the licensed establishments within the proximity of national highways, state highways if the licensed establishments are within the municipal corporation area.

The communication also noted that West Bengal, Assam, Kerala, Karnataka, New Delhi and Andhra Pradesh states have already permitted the licenced establishments which are located within municipal areas to function.      

 "The hotel industry is in very bad shape due to the apex court order and the recent GST implementation. Now with the bars all set to open we are hopping for some improvement in business which has been hit by 30 per cent," said a senior manager of a star hotel located near Guindy Raj Bhavan.