Supreme Court ban order to cost Telangana Rs 7.14 crore

Excise sees 43.66% dip in revenue.

Update: 2017-01-25 19:37 GMT
The demonetisation of Rs 500 and Rs 1,000 notes has affected the liquor sales in Chittoor district.

Hyderabad: The TS excise department faces the risk of losing Rs 714 crore in licence fee if the Supreme Court’s directions on ban on liquor within 500 metres of State and National Highways is implemented from April 1 this year. 

As per the data gathered by the department, 1,117 liquor shops, 394 bars/ hotels and 11 clubs in the state fall within this limit. The SC ordered state governments not to renew the licences of these liquor shops / bars after March 31.

The excise department submitted a report to the government on the impact of SC’s ban orders.

The department brought to the notice of the government that all these liquor shops, bars, hotels and clubs accounted for sales to the tune of Rs 7,040 crore from October 2015 to September 2016, which also accounts for half of the total liquor sales (50.07 per cent).

The report noted that the licence fee component of these establishments to be affected will be Rs 714.72 crore out of the Rs 1,637 total licence fee earned by the government, which amounts to 43.66 per cent.

However, sources said the government was exploring options to de-notify highways passing through cities and towns.

This will save more than half of the existing shops, bars, hotels or clubs from closure or relocation.

One for the road
243 liquor shops, 288 bars or hotels 10 clubs in municipal corporations, including GHMC, face the risk of their licences being cancelled.

217 liquor shops, 87 bars/hotels and 1 club in municipalities to be affected.

105 liquor shops and 9 bars / hotels to lose licences in mandal parishads.

552 liquor shops, 10 bars/hotels to be affected in villages.

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