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HC junks plea to interfere in IMFL ‘on shop’ licence issue

Orissa high court upholds state govt's decision on IMFL licences ... Read More
CUTTACK: The Orissa high court has declined to interfere in the state govt’s policy decision not to grant new licence to open IMFL ‘on shop’ in rural areas and restrict grant of licence in urban areas to only star hotels and those having a minimum number of rooms, to be decided by the excise department.

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The two-judge bench of Chief Justice Chakradhari Sharan Singh and Justice M S Raman said there is limited scope of interference with the policy decision as it has been taken considering larger public interest to ensure better regulation and to curb the growth of ‘on shops’ in the entire state.

The govt had taken the decision in the Excise Policy 2023-24 which came into force on April 1, 2023. The excise department, citing the new norms, had on May 29 last year rejected pending applications related to the 2022-23 fiscal. As many as 35 petitions had been submitted in court challenging the rejection order.

On the question of refund of Rs 1,10,000 in application fee, the state counsel said there is no provision envisaged for refund of application fee in the event the same is rejected. However, the state counsel conceded that if direction is granted to the govt, such refund would be considered.

Accordingly, the bench left it to the petitioners to approach the principal secretary, excise department, and claim refund of application fee within 15 days. The bench said if the approach is made, then the principal secretary shall consider the refund plea and take a decision at the earliest, preferably within three months.


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