Reportedly, the Supreme Court’s new rule led to the closure of 3,300 TASMAC shops of the 5,700 TASMAC shops in Tamil Nadu.

TN liquor stores face loss of Rs 730 crore in two months after SCs new highway rule
news Law Thursday, June 08, 2017 - 09:04

Two months after Supreme Court’s new rule on banning liquor along highways, TASMAC seems to be the most hit by this move. It has recorded a 15% reduction in annual revenue of Rs. 730 crore, reported The New Indian Express.

On March 31, the apex court ruled that the ban on sale of liquor within a particular distance of national and state highways will be upheld.

The judgment said that these establishments cannot function from April 1, 2017. 

Reportedly, the Supreme Court’s new rule led to the closure of 3,300 TASMAC shops of the 5,700 TASMAC shops in Tamil Nadu.

On April 25, 2017, the Madras High Court had temporarily stayed the government’s efforts of reopening or establishing liquor shops violating the Supreme Court’s order.

An official told TNIE that the annual income of the TASMAC shops is Rs. 29,000 and following Supreme Court’s new rule, they have suffered a loss of 15%. 

There have been repeated protests in various parts of the state against TASMAC shops which could cause more losses for the government. It is reported that the loss could be about Rs. 4350 crore. 

The Deccan Chronicle had earlier reported that the Tamil Nadu government will have a loss of revenue of Rs. 5000 crore due to the closure of 2700 shops.

Moreover, the closure of these shops would lead to unemployment of about 10,000 staff. However, such staff will be shifted to existing vacancies in the cooperative department. 

Earlier in 2016, after AIADMK came to power in the state, the government had prepared a list of 500 shops to be shut down in the first phase, staying true to their poll promise of prohibition.

The timings were also to be regulated. TASMAC shops were previously open from 10am to 10pm. The duration has now been reduced by two hours, with the revised timings being 12pm to 10pm.

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