The Tamil Nadu government had recently promulgated an ordinance amending the Tamil Nadu Prohibition Act 1937, to enable sale of Indian Made Foreign Liquor (IMFL) in the state only through state-owned retail outlets.
The state's decision to stop sale of liquor through private retail outlets is expected to take effect from November 28.
Sources within the trade association said there were over 4,500 licenced private retail outlets in the state of which 650 are in Chennai.
Even as the retailers are contemplating to legally challenge the state's decision, the association members have started the necessary paperwork to claim refund of Rs 8 lakh paid as advance money for fresh licences for the coming year.