Government of Tamil Nadu

ABSTRACT

 

Prohibition & Excise – Tamil Nadu Liquor (Retail Vending) Rules, 1989 – Licensing of Indian Made Foreign Liquor retail vending shops – Introduction of licensing system – Rationalisation of privilege amount  – Orders issued.


Prohibition and Excise (VI)  Department

 

 

 G.O (Ms).No. 120                                                                                                            Dated 30.6.2001


  Read:

                        1.      G.O.Ms.No.104,  Prohibition and Excise, dated 17.5.2001.
                        2.      G.O.Ms.No.109,  Prohibition and Excise, dated 6.6.2001.
                        3.      G.O.Ms.No.112,  Prohibition and Excise, dated 20.6.2001.
                        4.      G.O.Ms.No.113  Prohibition and Excise, dated 22.6.2001.
                        5.      G.O.Ms.No.115,  Prohibition and Excise, dated 22.6.2001.
                        6.      From the Commissioner of Prohibition and Excise  letter No.P&E.IX(1)23131/2000,
                                dated 28.6.2001.
                        7.      G.O.Ms.No.119, Prohibition and Excise, dated 30.6.2001.

- - - -

O R D E R :

 In the G.O. fourth read above, the Government ordered that a new licensing system for licensing of  Indian Made Foreign Liquor retail vending shops shall be followed for the block period 2001-2004. In the above G.O, it was also ordered among other things that the privilege fee of  the  Indian Made Foreign Liquor retail vending  shops for the year 2001-2002 shall be worked out on notified area basis, taking the average privilege fee of the last three years and providing for some suitable increase and that there should be a uniform privilege fee for a given notified area.

         2. Pursuant to the Government Order, the privilege amount of the shops was fixed by the Commissioner of Prohibition and Excise on notified area basis by taking the average privilege amount of the shops  for the last three years in the notified area and adding 50% thereof and dividing it equally among the  total number of the shops for including the shops added for the area.  The District Collectors issued notifications inviting applications for grant of privilege for Indian Made Foreign Liquor Retail Vending shops for the year 2001-2002.  The receipt of application in response to the notification is not very encouraging. The Commissioner of Prohibition and Excise has therefore examined the issue of refixation of the quantum of privilege amount for the shops in consultation with the District Collectors.  The District Collectors are of the view that there will be demand only for the shops located in the potential areas while the shops located in the non-potential areas may not be taken.  Moreover, when the privilege amount is very high, the shop may be considered non-profitable by the applicant and hence, there would be no takers for the shops having exorbitant privilege amount.  Wherever shops are located in prime areas, a sizeable number of applications have been received for such shops and wherever shops are located in areas where the business may not be profitable in proportion to the privilege amount fixed, no applications has been received.  The situation being so, non-receipt of applications for these shops would result in shortfall in revenue to the Government.  Therefore, the Collectors have suggested for rationalization of privilege amount of the shops.  If the privilege amount is reasonable, the licensees may not resort to the sale of spurious and seconds liquor which would help improve the off-take of genuine liquor resulting in more revenue to the Government. Taking into consideration these factors, the Commissioner of Prohibition and Excise has suggested that the privilege amount should be rationalized on the basis of local area classification such as Corporations, Special Grade/Selection Grade Municipalities, other Municipalities, Special Grade/Selection Grade Town Panchayats, other Town Panchayats and Village Panchayats and suggested the following rates:

Local Areas                                                              Privilege amount

                                                                                        (per shop)

Corporations                                                                         :Rs.14.00 lakhs

Special Grade/Selection Grade Municipalities                          :Rs.12.00 lakhs

Other  Municipalities                                                              :Rs.11.00 lakhs

Special Grade/Selection Grade Town Panchayats                    :Rs. 9.00 lakhs

Other Town Panchayats                                                          Rs .8.00 lakhs

Village Panchayats                                                                : Rs.5.00 lakhs

 

                        3. The Government have carefully examined the above proposal of the Commissioner of Prohibition and Excise. The Government have also reviewed the latest position as regards the receipt of applications for grant of privilege of Indian Made Foreign Liquor retail vending shops. It was found that at the end of 29.6.2001, the number of shops for which the applications have been received was only 3477 and the revenue that could be obtained from the shops will be Rs.415 crores approximately.  This figure is around Rs.195 crores less than the revenue that can be realized if the privilege amount structure as suggested by the Commissioner of Prohibition and Excise  in  para-2 above is adopted. It is considered that the privilege amount structure proposed by the Commissioner of Prohibition and Excise   will make the shop much more affordable and almost all shops will be taken.  If more number of shops are licensed there will be increased  sales and enhanced off-take of Indian Made Foreign Liquor, which will result in increase in revenue by way of duties and taxes. Further, the rationalized privilege amount structure would help to curtail any tendency among the retailers to indulge in malpractices like selling seconds and spurious liquor. This will further improve the off-take of Indian Made Foreign Liquor and thereby will increase revenue.

            4. In view of the above the Government accept the proposal of the Commissioner of Prohibition and Excise   for rationalization of the privilege amount of Indian Made Foreign Liquor retail vending shops and direct that the following rates of privilege amount may be adopted for licensing of the Indian Made Foreign Liquor retail vending shops for the year 2001-2002.   

 Local Areas                                                              Privilege amount
                                                                                                    (per shop)

Corporations                                                                          :Rs. 14.00 lakhs

Special Grade/Selection Grade Municipalities                           :Rs. 12.00 lakhs

Other  Municipalities                                                               :Rs. 11.00 lakhs

Special Grade/Selection Grade Town Panchayats                     :Rs.  9.00 lakhs

Other Town Panchayats                                                          Rs.  8.00 lakhs

Village Panchayats                                                                :Rs.   5.00 lakhs

           5.The Government also approve the revised schedule suggested by the Commissioner of Prohibition and Excise  for processing the applications and grant of privilege for Indian Made Foreign Liquor retail vending shops for the year 2001-2002 as in the Annexure.

          6.In order to facilitate rationalization of the privilege amount as ordered  in the para-4 above, the Government have decided to extend the period of the licence of the existing Indian Made Foreign Liquor shops for a further period of 15 days from 16.7.2001 to 31.7.2001.

                        7. Accordingly the following Notification will be published in an extra-ordinary issue of the Tamil Nadu Government Gazette dated 30.6.2001.

NOTIFICATION

                         In exercise of the powers conferred by sections 17-C, 17-D, 17-E, 18-B, 18-C, 20, 21 and 54 of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937), the Governor of Tamil Nadu hereby makes the following amendments to the Tamil Nadu Liquor (Retail Vending) Rules, 1989:-

AMENDMENTS

In the said Rules,-

(1)   after rule 14-B,  the following rule shall be inserted, namely:-

14-C. Further extension of licence period .- Notwithstanding anything contained in these rules, if a licensee who got the period of his licence  extended for a period of 15 days from 1.7.2001 to 15.7.2001 under rule 14-B, now desires to extend the licence period for a further period of 15 days from 16.7.2001 to 31.7.2001, he shall apply for such extension before 31.7.2001 in Form VIII-D, after remitting the proportionate privilege fee and licence fee payable under these rules “ ;

        (2)  after Form-VIII-C, the following form shall be inserted, namely :-

  FORM VIII-D

Application for extension of licence for the period from 15.7.2001 to 31.7.2001

 (See rule 14-C)

1.

Name of the licensee

:

2.

Licence No.  

:

3.

     (a) Address where the licensee was permitted

to conduct business.                        

   (b) If there is change of place, address may be

furnished.                                                                  

(c)Details of orders of licensing authority authorising transfer  

:

 

:

4.

Area of the retail shop where the shop is functioning

 

:

5.

Date of expiry of licence

:

6.

Whether proportionate privilege amount has beenremitted and if so furnish the following details:-

           (i)   Proportionate privilege amount remitted     
   
(ii)   Amount in cash
    (iii)  Amount by Demand Draft (indicate
         
the Demand Draft No. Date and  
         
Name of the Bank )                                          

 

 

: Rs.

: Rs.

: Rs.

7.

Whether the shop continues to be in his possession

:

8.

     (           a) Whether proportionate licence fee has been   paid                         
  
(b) If so, furnish the following details:-

               Amount in cash                                                         

(ii)               Amount by Demand Draft (indicate the Demand Draft No. Date and Name of the Bank )      

:

 

 

 

: Rs

: Rs

9.

    (a)    Whether he was punished during the period of licence

  (b)    If so, give details           

:

:

Certify  that the particulars furnished by me above are true and correct to my knowledge.

Place:                                                                         Signature of the licensee 

Date  :                                                                         

                                                                         BRAJ KISHORE PRASAD
                                                           
     SECRETARY TO GOVERNMENT.

                                                                                                           

To

The Works Manager, Government Central Press, Chennai-79 (for publication of notification in the extra-ordinary issue of
 the Tamil Nadu Government  Gazette dated 30.6.2001 and for sending 200 copies of the Gazette to the Government.)
The Commissioner of Prohibition and Excise, Chennai-5.
All District Collectors.
The Principal Accountant General(A&E),Chennai-18.
The Accountant General, (Audit) II, Greams Road, Chennai-6.

Copy to

The Director General of Police, Chennai-4.
The Managing Director, Tamil Nadu State Marketing Corporation Limited,Chennai-8
The Secretary to Chief Minister, Chennai-9.
Office of the Chief Minister, Chennai-9.
The Senior Personal Assistant to Minister for Revenue, Chennai-9.
The Finance Department,  Chennai-9.
The Co-operation, Food  and Consumer Protection Department,Chennai-9.
The Secretariat Library, Chennai-9.

 //forwarded/by order//

                                                                                     SECTION OFFICER


ANNEXURE

 S C H E D U L E

 1. Publication of revised  notification                                    1.7.2001

 2. Last date for receipt of application in Form VI   for grant of privilege  9.7.2001 up to  5.45 p.m.

 3. Scrutiny of applications                                                          10.7.2001 to 11.7.2001
 
4. Drawal of lots                                                                          12.7.2001
                                                                                               
 13.7.2001
                                                                                               
 14.7.2001

5. Last date for receipt of application in Form VIA
   
for grant of licence                                                                  24.7.2001

6. Licences to be issued before                                                   27.7.2001

7. Newly licensed shops to start functioning from                          1.8.2001