MUMBAI: In a reprieve to the Indian Hotels and Restaurant Association (AHAR), Hotel and Restaurant Association of western India (HRAWI) and seven other associations, the Supreme Court on Thursday stayed the imposition of Rs 9 lakh as costs on them by Bombay high court and granted interim relief against any coercive steps over hike in foreign liquor license fee for 2021-22.
AHAR and HRAWI had rushed to the SC to challenge an order of dismissal passed on March 29 by the HC which had also imposed Rs 1 lakh fine on each as costs on the nine association to be paid to the chief minister relief fund after finding their challenge to a 15 percent hike in the FL-III licence fee to serve liquor, sans any merit and arguments “bordering on outrageous’’.
The SC bench of Justices L Nageswara Rao and B R Gavai heard the matter, issued notice to the commission, state excise, Maharashtra on the special leave petition and directed that an order of May 6, 2021 passed by the HC granting interim protection from coercive action after payment of 50 percent of the hiked fees, should continue.
The association had challenged a January 2020 notification by which the FL-III fees were hiked for 2021-22 and the deadline to pay it was March 31, 2022.
The association’s contention is that the pandemic and the restrictions that followed led to reduced business and shorter hours leaving the industry badly hit and reeling under tremendous losses due to frequent lockdowns with almost no relief from the government. The state had informed the HC that almost 90 per cent of the FL III restaurants had paid up the hiked fees and concessions were already given earlier.
The HC in its judgment by Justices Gautam Patel and Madhav Jamdar had held, “We do not believe the pandemic can be cited time and again by businessmen to get extraordinary concessions. The pandemic affected everyone. All businesses suffered. No exceptional prejudice was caused to the present petitioners.’’
The plea before the SC was that the hike was unconstitutional and discriminatory.
