Hotels rue major losses following SC liquor ban, look at de-notification of roads

Visibly aggrieved at the Supreme Court ruling banning sale of liquor in hotels and restaurants falling within 500 metres of state and national highways, hospitality giants including Oberoi, Taj, ITC among others on Sunday decided to approach the government to arrive at a 'practically feasible' solution for this. Apart from top honchos from hotel industry, representatives from travel and tourism bodies were also in attendance to show solidarity and press for a unified way out to the issue.

Addressing the press conference for the first time after the ban, the hotel fraternity rued that while the judgment certainly seems to be in the right spirit to curb drunken driving, there are major concerns that are scaring the wits out of the industry. From downsizing to tourism being hit, the hotel lobby listed out problems that needed to be addressed comprehensively.

Speaking to the media, Kapi Chopra, president, Oberoi Hotels said, "It is a given that we will suffer major loss of revenue as the order comes into place. The other pressing issue is the loss of jobs that the ruling will incur in hotels and restaurants followed by massive onslaught on the tourism industry." Citing example of Goa, he reiterated that some places thrive on pub culture and draws tourists by the hordes.

Chopra further added that with April being the month of different events and conferences, they have already started to feel the heat as it is difficult to "tell patrons that they cannot have a glass of beer or wine".

Expressing similar concerns, Dr Ankur Bhatia, executive director, Bird Hospitality said that it is a challenging time for the industry. "Our business has been hit quite a bit. While we condemn the judgment in no way, we plan to propose the government to take leaf out of states like Haryana, Rajasthan that have de-notified state highways to work around the ban. This, let me clear, does not tantamount to defying the Supreme Court," he stated.

"Unfortunately, the urban infrastructure is such that a lot of hotels are on the highway. It is easier to move a liquor vend, but not a running establishment like a hotel. Besides, we do not sell alcohol, we serve them and we are responsible enough to take care of a drunken client," added Bhatia who has two properties running through highway roads.

The industry unanimously agreed that the ban will also hit wedding business since most of the banquets are situated on the outskirts of the city, bordering with highways. It also plans to deliberate on the matter before giving a written plea to the government.

Meanwhile, at least four states have de-notified highways to circumvent the Supreme Court ban that prohibits liquor vends within 500 metres of state and national highways.

Uttar Pradesh, Madhya Pradesh, Rajasthan and Chandigarh have de-notified their state highways to work around the ban.

Towns and cities with a population of less than 20,000 got a Hail Mary, when the Supreme Court on March 31 modified their December 15 order and ruled that liquor vends could operate at a distance of 220 metres from state and national highways as opposed to the earlier distance of 500.

In a partial relief to liquor vends, except Sikkim and Meghalaya — who were exempted from the ban — the order largely remained the same. Hearing a batch of last minute petitions from states and disgruntled stakeholders, a bench comprising of Chief Justice of India JS Khehar and Justice DY Chandrachud ruled, "The judgement of this court concludes that there is no justification to allow liquor vends on state highways (while prohibiting them on national highways) having due regard to drunken driving being one fo the significant causes of road accidents in India."