In a major relief to the Hotel and Restaurant Association of Western India (HRAWI) and Indian Hotel and Restaurant Association (AHAR), the Supreme Court (SC) of India has granted interim relief and a stay on the cost imposed on the petitioners.
The restaurants' association approached the SC after the Bombay High Court (HC)'s dismissal of pleas seeking to set aside the January 28, 2020, notification by the Maharashtra government prescribing the FL-III license renewal fees for 2021-2022. With this, the order stated that no coercive action be taken against the members of restaurants' association.
On the other hand, the Maharashtra government on Thursday, March 31, announced to partially roll back the previous hike in license fees for liquor vendors in order to bring relief to the liquor industry.
Commenting on this development, Shivanand Shetty, President, AHAR said, “Post the High Court dismissal we had to move the Supreme Court and we are glad that the apex court has taken cognizance of our pleas. Our businesses have been badly hit and we look up to the Government to provide us support so that we not only bounce back but also help in re-opening of businesses which are shut, which will also attract fresh investments and lead to employment generation.”
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For those unversed, the HRWAI and AHAR had filed a special leave petition against the impugned judgement of the Bombay HC on January 29, 2022. The HC dismissed petitions filed by nine associations, which stated that a fine of of INR 1 lakh was imposed on each holding that challenged 15% hike in Foreign Liquor license fee. Moreover, the HC directed that the amount be paid in 2 weeks into the Chief Minister’s Relief Fund.
The petition mentioned the decision lacked of a “shred of merit”, while the order stated it as “self-indulgent and self-serving foreign liquor vending hotels’’.
The hospitality industry in Maharashtra has urged Chief Minister Uddhav Thackeray to provide 50 per cent fees waivers for the fiscal year 2021-22.
On 28 January, the state government had hiked license fees for bars and restaurants in Mumbai which hold the permit room license from INR 6.93 lakhs in 2021-22 to INR 7.97 lakhs for 2022-23.
During the pandemic-induced lockdown, while the hospitality industry was badly hit, the restaurant segment was the worst hit. The period also saw the industry reeling under tremendous losses due to frequent lockdowns, mini lockdowns, restricted timings and restricted capacity to serve customers and with almost no relief from the Government. Owing to this many restaurant businesses had to shut permanently leading to even some of the stakeholders committing suicides.
Read More: Maharashtra Govt Hikes 15% Liquor License Fee; AHAR abhors hike in excise fees
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