The Andhra Pradesh High Court has directed the state government to file a counter affidavit explaining the increase in the renewal fee for liquor retail shop licences under the state’s new excise policy for 2026-27. The court’s direction comes after liquor traders challenged the government orders that provide for a 50% increase in the renewal fee for open-category liquor shops. The matter has been posted for further hearing on September 18.
A division bench comprising Chief Justice Lisa Gill and Justice Challa Gunaranjan heard the petition filed by liquor traders challenging Government Orders Nos. 579, 580 and 582. These orders relate to the renewal of liquor shop licences under the Andhra Pradesh excise policy for the financial year 2026-27. The petitioners have raised objections to the revised fee structure, particularly the higher renewal charges applicable to shops in the open category.
Senior counsel Vedula Venkataramana, appearing for the liquor traders, argued before the court that there is a significant difference in the retail excise tax imposed on liquor shops belonging to the open and reserved categories. According to the petitioners, shops engaged in the same liquor retail business should not be subjected to substantially different financial obligations based solely on their category. The counsel argued that such differential treatment raises constitutional concerns.
The petitioners have also sought relief regarding the deadline for submitting applications for liquor shop licence renewal. They requested the High Court to extend the September 20 deadline, stating that traders need additional time to complete the renewal process in view of the ongoing legal challenge over the revised fee structure.
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The High Court has now sought a detailed response from the Andhra Pradesh government on the issue of the increased renewal fee. The state has been asked to place its position before the court through a counter affidavit. The court will consider the matter again on September 18, when the government’s response is expected to be examined.
The case comes at a significant stage for Andhra Pradesh’s liquor retail sector, as traders are preparing for the implementation of the 2026-27 excise policy. The outcome of the proceedings could provide further clarity on the revised renewal fee structure and the deadline for liquor shop licence applications.
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