Hundreds of thousands of alcohol shops, restaurants and hotels across India may be forced to close the shop, where profits are expected to dry up after a new Supreme Court ruling. The country’s top judiciary has decided to uphold a ban on the sale of alcohol in establishments less than 500 meters away from all national and national highways.
The judgment of 1 April made a decision in December 2016 that hotels and restaurants would not be exempted from the ban, which was originally intended to target shops selling alcoholic beverages only. It was imposed by the government as a measure to reduce accidents caused by leadership under influence.
After coming into effect over the weekend, companies across the country suffered a big blow in profits, with losses estimated at 40%. “We are quite shocked as an industry. Countries like Maharashtra, Assam and Tamil Nadu have seen that the ban will only be imposed on liquor stores,” said Pradeep Shetty, a member of the legal committee of the Federation of Hotels and Restaurants Associations, according to the Economic Times.
Revenues from alcohol, currently at 120 billion rupees (1.8 billion US dollars, 1.4 billion pounds) per year, are expected to fall by half. “The Indian food service industry, which is worth Rs. 408 crore (Rs. 4.8 trillion, Rs. 62.8 billion, £ 50.1bn) today, will lose approximately Rs 200,000 crore due to this judgment.” Kamlish Parot, Former, Federation of Hotel and Restaurant Associations of India (FRAY) said Quent.
With this sharp drop in revenues, restrictions could eventually lead to job losses for more than 1 million people currently working in hotels and restaurants now under the restricted area.
“I can not leave the staff of our office unemployed, they have been with me for many years, so we are looking at every possible option and we are also looking at a legal route,” said Manish Guial, owner of Café C and Swagath, in northern Indian Indian state of Chhattisgarh. Express. Goyal along with the owners of other institutions and staff took to the streets to celebrate the candlelight against the ban.
Companies with alcohol licenses will be allowed to run their bars until they expire later this year, and then new auction rules will be implemented.State governments are also considering ways to circumvent restrictions and Rajasthan, Madhya Pradesh, Uttar Pradesh and Chandigarh have already decided to identify some state highways to allow businesses to continue.
While shops, bars and restaurants are expected to suffer from the worst, hotels near highways are at risk of losing their star ratings because they can not drink alcohol. “It’s a black day in the history of the hospitality industry,” says Arjun Sharma, managing director of Select Group, a major hospitality company, with many hotels and resorts across the country. “We appreciate Sk’s attitude regarding drunken driving, but there should have been a carving for the hospitality industry.”