Thread

TN govt is more opposed to only online sales of liquor than shutting down of outlets. The state’s reluctance in going for full fledged online sales is quite palpable in its pleadings in SLP. 1/n

HIP BAR a fintech company, entered appearance in the litigation against TASMAC & offered its services to deliver liquor online free of cost before the HC. HIP bar claimed that it is already in tie-up with TASMAC for sales. 2/n

Their plea is true. Now, liquor can be purchased in all TASMAC Elite outlets. However TASMAC employees were reluctant to encourage payment using the app, as they would lose the extra 10 to 15 rupees per beer & other liquor. 3/n

However, TN govt stoutly opposed the offer and said, Hip Bar is used only in Elite & not in TASMAC outlets which was recorded by Madras HC. The opposition of TN govt was strange, as in online no one is going to order cheap quarters, but full bottles. 4/n

Now, TN govt strongly assails, HIP Bar’s offer in SLP. It says, “HIP Bar’s its capability as a home delivery coordinator is unknow n and untested at best and it is not scheduled systems provider of the State.” 5/n

Further, the SLP says, the Madras HC which heard the Hip Bar plea, “seemed to be unknown of the fact that such e-payment and home delivery call for immense logistical coordination,”
TN govt seems to have quickly come to the conclusion that 6/n

Hip Bar doesn’t have the capability to supply liquor online. However, Hip Bar, had actually commenced online supply of liquor in Karnataka in August 2017 itself which was discontinued after the issue was flagged in a litigation in Karnataka HC, 7/n

for lack of enabling provision in Karnataka Excise Act, 1965.
https://bangaloremirror.indiatimes.com/bangalore/others/door-delivery-of-liquor-not-allowed-in-law-high-court/articleshow/71213140.cms
The reasons for stiff opposition to TN govt’s online sale of liquor are manifold. 8/n

Unlike in other states, tipplers in TN cannot have the choice of their liquor but are forced to buy liquor of unpopular / unheard brands. Tipplers who are known to be brand conscious don’t usually go for unknown brands. However, in TN they don’t have a choice. 9/n

In states where liquor sales is handled by private, they procure liquors only which are fast moving as per demand. But in TN, sources say, bribe is paid by the manufacturers at the rate of per case to procure their unpopular brands & thrust it on the hapless customers. 10/n

That apart, unaccounted sales has been happening for quite sometime in TN TASMAC outlets. For example, if a shop is delivered 100 cases of brandy, 70 will be supplied by TASMAC & the rest will be supplied by the manufacturer directly to the outlet. 11/n

The consumer won’t know the difference whether a liquor bottle is supplied by TASMAC or the manufacturer & he would care about it the least. In this arrangement, the manufacturer is happy as he need not pay the huge tax which ranges between 220 to 270%. 12/n

And of course the powers that control the TASMAC would be more than happy with such an arrangement.
Lastly, in every TASMAC retail outlet, including ELITE shops, every bottle is charged more ranging from 5 to 25 rupees. 13/n

Considering the volume of sale, this amount is huge & sources say, the amount is shared up to the level of Minister. If online sale is implemented, this amount come to a naught. 14/n

Further, when a consumer has the option of choosing his brand of liquor online, he would certainly not prefer the unknown brand but would go for the popular ones, which would severely affect the collection of amounts on this basis. 15/n

Unknown / Unpopular brands would stagnate for lack of takers.
The unusual scenes in TN, where drunkards lying in the road is a common sight is due to the poor quality & addictive nature of liquor supplied in 180 ml bottles. 16/n

People who are addicted to these poor quality liquor don’t prefer any other liquor. These poor quality liquor manufactured & supplied in TN is equivalent to illicit arrack.
Taking into account all these factors, the nervousness of the TN government is understandable. 17/n

The hurried SLP of the TN govt against MHC order is not due to its concern about chronic alcoholics suffering from withdrawal symptoms, but the powers that be suffering due to sudden stoppage of money flow into their coffers.
End of Thread.