New Delhi, Aug 13: The Supreme Court has dismissed the Karnataka government’s plea against a High Court order that had quashed the concessions granted to SC/ST category people in liquor business in hotels.
The HC had declared “unconstitutional” the 2014 amendments brought in by the state government in its excise rules. A bench of Justices Ranjan Gogoi and Navin Sinha declined to entertain the special leave petition filed by the state government against the judgement of January 20 this year.
The court pointed out that since it had already rejected similar pleas made by the affected parties on May 4, it was not inclined to consider the petition by the state government.
Senior advocate Basava Prabhu Patil, representing the state government, defended the amendments to the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968.
The changes granted relaxation to people from the reserved category by reducing to half the bedroom capacity requirement for hotels and lodges to serve liquor as compared to those run by the general category people. SC/STs were also given concession in annual licence fees. B Govindaraj Hegde, Secretary of Federation of Wine Merchants Association of Karnataka, challenged the amendments to the rules effected by a notification of June 9, 2014. He had contended it would encourage dubious investment by liquor barons in the name of backward class people.
The HC’s single judge as well as division bench struck down the amendments. It had held that the state failed to discharge the burden of demonstrating that such classification or a differential treatment was with a view to achieve the object of providing more opportunity to the reserved class. The decision was not backed by detailed study and, therefore, it was arbitrary too, the HC had said.
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