The Madurai Bench of the Madras High Court has refused to halt the Tamil Nadu government’s move to close several TASMAC liquor outlets across the state, observing that private vendors cannot force the government to continue liquor sales merely because their licences remain valid until June 30, 2026.
Justice D. Bharatha Chakravarthy delivered the ruling while hearing a batch of petitions filed by snack vendors, water bottle sellers and empty bottle collectors operating inside or around TASMAC liquor shops. The petitioners had challenged the state’s decision to shut down 717 retail liquor outlets, arguing that the closures were sudden and affected their livelihoods and business expectations.
The Court, however, made it clear that liquor trade does not enjoy the same protection as ordinary commercial activities. Referring to long-standing legal principles, the judge observed that liquor business is considered “res extra commercium” — an activity outside normal trade and commerce because of its harmful impact on public health and public welfare.
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In a strong observation, the Court said that when the government considers a business harmful to society and public health, steps taken to reduce or shut down such activities should be welcomed rather than opposed.
While refusing to stay the closure of TASMAC shops, the High Court provided limited relief to some petitioners. Authorities were directed to refund excess licence fees collected from vendors who had paid for permissions extending beyond the closure period. This applies particularly to small vendors selling snacks and packaged drinking water at the affected liquor outlets.
The petitioners had also argued that many landlords who leased their premises to TASMAC outlets would face financial losses due to the closures. However, the Court did not accept this as a sufficient ground to interfere with government policy.
The Tamil Nadu government’s decision to reduce the number of TASMAC retail liquor shops is seen as part of broader efforts to address concerns related to alcohol consumption, public health and law and order. TASMAC, the state-run liquor retail corporation, controls alcohol sales across Tamil Nadu and has often faced criticism over the social impact of liquor availability.
The latest ruling is expected to strengthen the state government’s authority to regulate and reduce liquor retail operations in the interest of public welfare, while also setting a significant precedent for future disputes involving liquor trade licences in India.
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