The Supreme Court on Tuesday upheld Kerala government's liquor policy that confined issuance of bar licenses to five-star hotels.

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The bar owners, in their plea, had contended that the policy of was discriminatory in nature and would lead to a situation where only the well-heeled have access to alcohol.

A bench of Justices Vikramajit Sen and Shiva Kirti Singh upheld the policy.

Kerala government had argued that the decision taken by the state not to renew licenses was a policy decision.

Earlier, the high court had upheld the state government's liquor policy granting licenses to beer and wine parlours, resulting in the shut down of 300 bars below the prescribed category.

The state government's decision was a part of its policy to make Kerala a liquor-free state by 2023.

Attorney General Mukul Rohatgi, appearing for the bar owners, had said this policy will lead to a situation where only the well-heeled have access to alcohol.

On October 30, 2014, the Kerala High Court had upheld the state government's decision to close down more than 700 bars, but had exempted heritage and four-star hotels.