Karnataka State Arrack, Toddy Sellers and Toddy Tapping Workers’ Federation has moved the High Court against the state government’s decision to ban the manufacture and sale of arrack in the state from July 1, 2007.

A writ petition filed by the Federation represented by its president H K Ramachandrappa and three employees of arrack shops in Davanagere, sought the Court to issue a writ prohibiting the government from issuing any notification giving effect to its decision.

The petitioners contended that the government’s decision announced in the budget 2007-08  was “discriminative and inconsiderate” to lakhs of workers.

The petition contended that the government had unjustly banned the arrack business while it allowed the sale of Indian Made Foreign Liquors (IMFL) like gin and vodka despite the fact that they contain higher or similar percentage of alcohol.

While the big IMFL companies would cash in on the ban, it is harsh on the poor engaged in country spirit business, it said.

The petition termed the government’s decision, a hasty political decision without proper appreciation of its impact, while pointing out that the government had not framed any measures for the rehabilitation of arrack workers.

Lakhs of people working are in arrack shops since four decades. Most of them are above 50 years of age and have large families dependent on their income, the petition explained.

Justice Mohan Shantangoudar ordered notices to state government and Excise Commissioner, while asking them to file their reply (counter statements) within three weeks.

Licence fee hike

Another petition filed by several liquor trade licensees of Bangalore, challenged the state government’s proposal to hike the licence fee for liquor trading.

The petition filed by M/s Vinayaka Stores and several others having CL2 (retail liquor shop)  and CL9 (refreshments and bars) licences for the year 2006-07, challenged the government notification dated May 28, 2007.

The notification had published draft rules to amend the licence fee chargeable on different groups of liquor trading licences from the new excise year starting from July 1, 2007.

Fee for CL2 category was Rs 2.23 lakh in 2006-07 and is sought to be hiked to Rs 4.46 lakh from 2007-08, and for CL9, it is sought to be enhanced from Rs 3 lakh to Rs 6 lakh, the petitioners explained.

The petitioners suspected the government move to enhance liquor licence fee as a measure to make good the revenue loss due to proposed arrack ban and non-issuance of wholesale liquor licences during 2006-07.Justice Mohan Shantangoudar ordered notices to state finance and excise departments, while adjourning the matter to June 29, 2007.