In an unusual move, two days after the Tamil Nadu government’s Commissionerate of Prohibition and Excise temporarily suspended liquor licences granted to five top star hotels in the city, the department has revoked its own order. 

The order was revoked after representatives of the hotels met government authorities and gave an undertaking to follow the directives. Sources said the representatives of the five star hotels gave written undertakings to the Commissioner of Prohibition and Excise. The office bearers of Tamil Nadu Hotels Association however told TNM that the liquor licences of these five star hotels were ‘mistakenly’ suspended. 

On August 3, 2024, the Tamil Nadu government’s Commissionerate of Prohibition and Excise temporarily cancelled the F.L.3 licences granted for possession of liquor by star hotels. Five top hotels Taj Club House, Somerset, Radisson Blu, Hyatt Regency, The Park that house popular bars in Chennai came under fire for allegedly ‘violating norms’. 

The sudden move by the Tamil Nadu government's Prohibition and Excise department was publicised in the form of a press note issued by the Department of Public Relations (TNDIPR). The press release accused these five star hotels of supplying liquor to outsiders and violating the licence norms. 

The suspension of liquor licences and revoking the orders within 48 hours have raised many eyebrows in the bureaucracy. Secretariat sources said there is no clarity on why the licences were cancelled in the first place. “If there was a violation, the first procedure is issuing a show cause notice. But in this case the licences were suspended and the pubs were shut down immediately. When such actions are taken, it is not publicised in the form of a press release. But in this case there was an exception. Something is off in this case,” the source added. 

According to the proceedings of SP Karthikaa, the Commissioner of Prohibition and Excise, a copy of which is seen by TNM, On August 2, an inspection was carried out at the bars of five prominent hotels in Chennai and it was found that they were serving alcohol to outsiders who are not guests who stay in the hotel. The statements of general managers were recorded and FL-3 licences were temporarily suspended under Rule 22(2) of the Tamil Nadu Liquor (Licence and Permit) Rules, 1981. 

On August 5, a representation was made by the General Manager of the hotels requesting to revoke the orders and allow them to operate business in their FL 3 Bar. “Considering the request, the orders issued vide this office proceedings is revoked subject to further examination of the explanation and enquiry if any, required,” read the document. 

TNM spoke to one of the representatives of the hotel which faced Prohibition and Excise department action, “We are not sure why action was taken against our hotel. The authorities visited our premises on Friday, August 2, and the bar licence was temporarily suspended. After we reached out to the government authorities, we have been given permission to operate our bar,” he added. 

Another bar representative who spoke to TNM on condition of anonymity said some bars in Chennai have been violating norms by serving alcohol beyond the permissible time. “But the excise department has not taken any action against them and they will be allowed to operate with a warning. This happens in rare cases. Temporarily suspending the licences of top five star hotels is happening for the first time,” he said. 

The press release issued by the DIPR said the five hotels have been “violating the norms by allowing outsiders to consume alcohol and indulging in committing an offence by serving alcohol.” 

However, in March 2013, the office of the then Commissioner of Prohibition and Excise Malik Feroz Khan had issued a circular issuing instructions regarding the consumption of alcohol in FL-3 bars.  

The circular said: “Recently it has been brought to our notice that restrictions are imposed for non-guests and customers visiting the restaurant to consume liquor in the bars of the hotel. In this regard it is informed that there is no restriction in the rules to supply liquor to the persons who are willing to consume liquor in the hotels while they visit restaurants for food,” the circular said.  

Tamil Nadu Hotels Association President K Venkada Subbu said  a representation was sent to the Commissioner of Prohibition and Excise requesting them to revoke the decision to suspend the licence. “They seem to have cancelled the licences by mistake because the hotels were not violating licence norms. FL-3 licence allows serving of liquor to anyone within the premises,” he added.

TNM reached out to Commissioner of Prohibition and Excise SP Karthikaa for a comment and the article will be updated once we receive a response..