Madras High Court dismisses challenge to Tamil Nadu government’s decision to close down 717 liquor shops

The Madras High Court on Wednesday dismissed a writ petition filed by two individuals challenging a decision taken by Chief Minister C. Joseph Vijay on May 12, 2026 to close down 717 Tamil Nadu State Marketing Corporation (TASMAC) retail liquor shops located within a distance of 500 metres from educational institutions, places of worship and bus stops.

Justice G.R. Swaminathan observed that it was a “good decision” and refused to interfere with it at the instance of two landlords who had given their properties on lease for running two of those shops. The judge agreed with Advocate General Vijay Narayan that the policy decision taken by the government could not be questioned by the landlords by way of a writ petition.

The judge also said, the decision was in consonance with the State’s constitutional obligation to make an endeavour towards complete prohibition. He further recorded the submission made by Additional Advocate General T. Gowthaman, representing TASMAC, that the deposits made by the petitioners, before leasing out their properties during the DMK regime, would be refunded to them.

P. Saravanan (53) and C. Mathiarasan (63) of Adyar in Chennai had filed the joint writ petition claiming to have leased out their properties for running two retail liquor shops at R.A. Puram and Velachery in Chennai. The petitioners claimed that the leases were periodically renewed and TASMAC was paying them monthly rent but all of it had suddenly come to a grinding halt because of the Chief Minister’s announcement.

The petitioners complained that no government order had been issued with respect to the closure of the 717 shops but for a press release issued on May 12, 2026. They also wondered how the shops located within a distance of 500 metres could be closed when the statutory rules prescribe a much lesser prohibitory distance of 50 metres in corporations and municipalities and 100 metres in other places.

They brought it to the notice of the court that the State government had framed the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003 by exercising the power conferred on it under the Tamil Nadu Prohibition Act of 1937. Rule 8 states that no liquor shop shall be established in corporations and municipalities within a distance of 50 metres from places of worship or educational institutions.

Similarly, the rule prescribes a distance of 100 metres in other places and makes it clear that the distance rule would not apply if any place of worship or educational institution comes into existence subsequent to the establishment of a liquor shop. However, the incumbent Tamilaga Vettri Kazhagam government had arbitrarily widened the distance criteria to 500 metres, the petitioners complained.

During the course of arguments, advocate M.T. Arunan intervened and told the court that he had filed a writ petition in 2025 to close down the liquor shop in R.A. Puram but the High Court had refused to pass any such order since it was within the distance prescribed by the rules. The Supreme Court too had dismissed an appeal against that order but the new government had voluntarily come forward to close down the shop, he said.