A nationwide ban on the sale of liquor within 500 meters of state and national highways, which came into force in the month of April, was a big blow to the hospitality industry in India. Almost 15000 stores got closed due to this law in which almost 2/3rd of them were bars & restaurants. In 4 months of the ban, the industry faced a loss of more than 1000 cr.
Wednesday however, brought good news for this industry. The Supreme Court, on 23rd August 2017, announced that the liquor ban is not valid within city limits. The Apex Court removed all the misunderstandings related to the law saying that this law was applicable only to the places that connect cities, town, and villages; the law was not applicable to municipal areas. The law will be applicable to all the municipal areas. The court thought it right to clear out the air of ambiguity around the law of municipal area connected with State & National Highway.
This move will see all the stores reopening within a few weeks. As per the latest news, all the liquor license holders are supposed to renew their licenses and restart their work. The President of National Restaurant Association of India, Riyaz Amlani, said, “Now licenses will be renewed and in another two to four weeks the industry will settle down and get back to business”.
Spirit and beer industry saw a major downfall in recent months because of this nationwide ban. The turnover of spirit industry slid down by 4 % and the turnover of beer industry slid down by 2%. We will again witness the charm of posh areas like New Friends Colony, Delhi brightens up with the new stand taken on the liquor ban case.