SC Order in TN Liquor Case

Why in news?

The Supreme Court ordered a stay on Madras HC's order 'barring the sale of liquor through retail stores and mandating online sales alone', in a case by Tamil Nadu.

What was the case about?

• The Madras High Court initially allowed the State government to open its vast network of liquor shops amidst lockdown.
• Outlets of the State-run TASMAC were permitted to open, subject to several conditions for maintaining physical distancing.
• However, the State witnessed scenes of unmanageable crowds and long queues when shops re-opened.
• As there was overwhelming evidence that physical distancing had been compromised, the HC banned across-the-counter sales.
• It directed that only online sale be permitted.

What does the SC order indicate?

• States' revenues are dwindling due to the stagnation in economic activity since the national lockdown began.
• States are desperate to raise money to combat disease spread and to keep their public health services going.
• It is this desperation that led Tamil Nadu to rush to the Supreme Court to obtain a stay on a Madras High Court order.
• The conflict between fiscal health and public health is quite real for the States.
• Notably, the number of people testing positive for the novel coronavirus is increasing in TN.
• But the top court seems to be mindful of the need to preserve the policy space of States.

Is the State's argument valid?

• The State government’s argument that the HC ought not to have interfered in a policy matter may be sound.
• And this had logically impressed the Supreme Court.
• However, the state's claim that online sale was not possible in a State like Tamil Nadu raises doubts.
• The reality is that selling liquor online would cut into the unaccounted extra fee that TASMAC staff charge for every purchase.
• At Rs. 5 to Rs. 10 for each sale, this amount runs into crores of rupees annually and is believed to be shared among vested interests.

What lies ahead?

• The possibility that reopening TASMAC outlets may lead to another infection spiral is high.
• Tamil Nadu has fought bitterly, even at the cost of making a highly contentious decision, to get liquor sales going.
• So it now has to live up to its promise of preventing overcrowding in the vicinity of its outlets.

Source: The Hindu