Court Upholds Supreme Court Guidelines, Cites Health and Safety Concerns Over Liquor Outlets Operating Within Prohibited Distance from Highways
In a significant ruling delivered on September 8, 2026, the Division Bench of the Madras High Court at Madurai, comprising Justices C.V. Karthikeyan and R. Sakthivel, directed the immediate closure of TASMAC Shop No.10215 located in Vellithirumutham Village near the Trichy-Chennai National Highway. The Court also restrained the authorities from granting an FL-2 license to a proposed recreational club situated within the same vicinity, citing violations of Supreme Court guidelines and the Tamil Nadu Liquor Retail Vending Rules, 1981.
The writ petition, filed by Mohanraj and another, raised serious concerns about the proximity of the liquor retail shop and the proposed club to the National Highway. The petitioners contended that TASMAC Shop No.10215 is situated merely 55.7 meters, and the recreational club approximately 71 meters, from the highway—both distances falling well short of the mandatory minimum distance of 220 meters prescribed by the Supreme Court of India. The petitioners argued that such close proximity poses risks to public health and safety, especially given the potential misuse of FL-2 licenses by clubs serving liquor to the general public under the guise of membership privileges.
The State Government’s respondents, including the Commissioner of Prohibition and Excise, argued that the permissions had been granted after due consideration of the relevant rules and that the recreational club’s FL-2 license application was still under scrutiny. They maintained that licenses permit liquor service only to eligible club members and assured that any misuse would invite strict legal action.
However, upon inspection reports filed by the District Collector of Trichy, the Court found that the aerial distances from the highway to both the TASMAC shop and the recreational club were significantly less than the 220-meter limit mandated by the Supreme Court in the landmark judgment of State of Tamil Nadu v. K. Balu (2017). The Court emphasized that the actual travel distance to the shop is irrelevant in this context; what matters is the aerial (straight-line) distance, which determines visibility and accessibility from the highway.
Referencing the Supreme Court’s directives and the Tamil Nadu Government Order dated May 21, 2018, the Bench underscored that FL-2 licenses are subject to strict regulatory oversight and must comply with distance norms to prevent liquor outlets from being strategically located near highways, which are sensitive zones due to traffic and public safety concerns.
The Court also highlighted prior rulings, including Perumal v. Commissioner of Prohibition and Excise (2025), which warned against recreational clubs operating as de facto liquor shops circumventing state control mechanisms. It noted the necessity for periodic inspections and strict compliance with by-law conditions to prevent misuse of liquor licenses.
Exercising its writ jurisdiction under Article 226 of the Constitution, the Court ordered the closure of TASMAC Shop No.10215 forthwith and prohibited the issuance of FL-2 licenses to the proposed recreational club unless relocated beyond the prescribed distance. The authorities were permitted to consider fresh applications for relocation in conformity with the law and judicial precedents.
The judgment reinforces the judiciary’s commitment to enforcing stringent controls on liquor sales near highways, balancing commercial licensing with public health imperatives and legal mandates.
Bottom Line:
Prohibition of liquor retail shops and clubs near highways - TASMAC shop and proposed recreational club found to be within prohibited distance from National Highway in violation of Supreme Court guidelines and Tamil Nadu Liquor Rules.
Statutory provision(s):
Tamil Nadu Liquor Retail Vending (In Shops And Bars) Rules, 1981, Tamil Nadu Liquor (Licence and Permit) Rules, 1981, Article 226 of the Constitution of India
