The division bench also nullified the single bench order, which allowed liquor licences to four-star and heritage category hotels.
However, the court ratified the government decision to amend its liquor policy to allow beer and wine parlours in the closed bars.
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With today’s decision, the 312 three and four star hotels now operating can apply for only beer and wine parlour licences.
Reacting to the court order, the Kerala bar hotel owners association said they would challenge the verdict in the apex court.
The division bench comprising Justice KT Sankaran and Justice Babu Mathew P Joseph in an order stated it was not appropriate to intervene in the policy decision of the government. The bench dismissed the petitions filed by a group of bar hotel owners, stating the government can take appropriate actions to control consumption of liquor.
Liquor consumption in Kerala had swollen in recent years. The per capita consumption in the state is 12 litres a year, which is roughly twice the national consumption.
The bench also said drinking liquor was not a fundamental right.
Rejecting arguments of bar hotel owners that the ban would affect the revenues of the government and the tourism sector, the bench considered it not to be a concern.
According to the order, only five star hotels can open bars. Around 312 bars, including four star and heritage category, should cease operations today. With the order, only 24 bars in the five star category will be functional.
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