High Court quashes new excise policy

A Division Bench of the state high court on Tuesday upheld the single judge's recent orders pertaining to the renewal of licences of the existing retail liquor shops.

Terming the new excise policy as arbitrary, the Bench observed that the decision of the government which effectively denied continuance of the existing retail outlets by calling for fresh applications and seizure of the unsold stocks from the existing shops as violative of Article 14 of the Indian Constitution.

The Division Bench comprising justice B Sudarshan Reddy and justice C V Ramulu also upheld all those observations of the single judge who expressed doubts about the very purpose of the new excise policy.

The government has decided to extend the licence period of the existing retail shops for another three months.

According to officials, the government has also decided to return the demand drafts submitted by all those who applied for fresh licences for 2005-06 to the excise and prohibition wing.