Keralam weighs cancellation of 32 bar licences over lack of star classification

Thiruvananthapuram: The Keralam government has sought legal advice on cancelling the licences of 32 bar hotels whose applications for star classification were rejected by the Union Ministry of Tourism. Excise Minister M Liju had earlier clarified that hotels whose applications were rejected by the Centre would not be allowed to operate bars. The Union Tourism Ministry provided the list of these hotels in response to a letter from the state Taxes Department.

The Kerala Foreign Liquor Rules stipulate that bar licences can be granted only to hotels with star classification awarded by the Centre. The issue came before the High Court in a case challenging the grant of bar licences to hotels that had not renewed their classification. Following the minister's directive, the Tourism Ministry was asked to submit a report.

According to the report, the ministry received 293 applications for renewal of classification and inspected 226 of them. Classification was renewed for 140 hotels, while 32 applications were rejected. Inspections have been scheduled at 38 hotels. Some other hotels have been inspected and given time to rectify deficiencies. Fewer than 70 applications are yet to be taken up for inspection.

In an affidavit submitted to the High Court in early October, the Tourism Ministry had stated that 120 applications were pending. This figure included hotels awaiting inspection, those for which inspection dates had been fixed and those asked to rectify deficiencies.

Despite losing their star classification, all 32 bar hotels have paid the bar licence fee of ₹35 lakh each for the period up to March 31 next year. The previous government had issued an order on February 13 allowing hotels that had applied for classification to renew their bar licences. The licences were granted based on this order. The government is now seeking legal advice on the matter.

Meanwhile, the Vigilance department will investigate the bar licence controversy and allegations against officials mentioned in a report submitted by former Excise Commissioner Seeram Sambasiva Rao.

Excise Minister M Liju has handed over a detailed note on the matter to the Chief Minister. He has also briefed Home Minister Ramesh Chennithala. The minister has held discussions with Vigilance Director Manoj Abraham as well. An order instituting the probe is expected shortly.

The investigation will also cover bar and airport lounge bar licences granted after the new government assumed office. Sambasiva Rao was removed from his post on the grounds that he had acted contrary to the government's directives in these matters.