Telangana HC hears plea challenging Rs 3 lakh non-refundable fee for liquor shop licences

Hyderabad: The Telangana High Court on Monday heard a writ petition challenging the State Government’s ‘Liquor Policy 2025-27,’ specifically the non-refundable application fee of Rs 3 lakh for operating retail liquor shops.

The petition was filed by Gaddam Mallaiah, a resident of West Maredpally, Secunderabad, who argued that the fee is prohibitively high for ordinary citizens.

No concessions for SCs, STs and Gouds

The petitioner contended that the policy does not provide any financial concessions for Scheduled Castes (SCs), Scheduled Tribes (STs) or Goud communities, effectively restricting participation to wealthier applicants.

His counsel sought a stay on GO 93, dated August 14, under which the liquor policy was framed.

‘Fee likely to exclude lower middle-class applicants’

During the hearing, the petitioner’s counsel highlighted that the high non-refundable fee, in addition to the refundable EMD, could prevent lower middle-class entrepreneurs from participating.

The State Government has estimated liquor consumption for 2024-25 at Rs 40,000 crore. The allotment notification for Retail Liquor A4 shops was issued on September 26, with the draw of lots scheduled for October 23, and shop operations set to begin from December 1.

HC observes petition premature, advises non-participation

Justice NV Shravan Kumar described the petition as ‘premature’ and told the petitioner, “If you cannot participate, then don’t participate in the policy. Nobody encourages consumption of alcohol.”