The Kerala High Court has issued notice on a Public Interest Litigation (PIL) challenging the State Government's decision to relax the mandatory requirement of a valid tourism star classification for the renewal of FL-3 bar licences granted to hotels. The petition raises concerns over the legality of the government's decision, alleging that it permits the renewal of bar licences in violation of the statutory requirements prescribed under the Kerala Foreign Liquor Rules.
The petitioner contended that the Foreign Liquor Rules require hotels seeking the grant or renewal of an FL-3 licence to possess a valid and subsisting star classification certificate issued by the Ministry of Tourism. According to the petition, this requirement is mandatory and forms an essential condition for obtaining or renewing a bar licence. However, the State Government allegedly relaxed this requirement by permitting licence renewals for hotels whose applications for renewal or reclassification of their star ratings were still pending.
It was argued that the relaxation was introduced through an administrative communication directing the Excise Commissioner to renew bar licences for hotels that had applied for reclassification of their tourism star ratings but had not yet received fresh certification. The petitioner submitted that such a communication effectively diluted the statutory requirements contained in the Foreign Liquor Rules without any corresponding amendment to the Rules themselves.
The petition further alleged that the relaxation was granted following representations made by hotel associations, which cited delays in the processing of star classification applications. However, according to the petitioner, the delays were not attributable to the authorities but were largely caused by the concerned hotels themselves, including requests for postponement of inspections and other procedural lapses. In these circumstances, the petitioner argued that hotels could not claim exemption from compliance with the mandatory licensing conditions.
Another important contention raised before the Court was that an executive communication cannot override or modify statutory rules. The petitioner submitted that if the Government intended to relax the eligibility criteria for bar licence renewals, it ought to have amended the Foreign Liquor Rules through the prescribed legislative procedure. Any attempt to bypass the statutory framework by issuing administrative directions, it was argued, would be legally unsustainable and contrary to established principles of administrative law.
The PIL also sought a direction for an independent investigation into the circumstances under which the relaxation was granted. It was alleged that the decision was influenced by external interests and that the process leading to the issuance of the communication required a thorough inquiry. The petitioner claimed that despite submitting representations seeking an investigation into the matter, no effective action had been taken by the authorities.
Taking note of the submissions, the Kerala High Court admitted the matter for consideration and issued notice to the State Government and other concerned authorities. The Court sought their response to the allegations regarding the relaxation of the mandatory star-rating requirement and the legality of the administrative communication permitting renewal of bar licences.
The case raises significant questions regarding the extent of executive power in matters governed by statutory rules. It also concerns the balance between administrative flexibility and strict compliance with regulatory requirements governing the liquor licensing regime. The outcome of the proceedings is expected to clarify whether executive instructions can temporarily relax mandatory statutory conditions without a formal amendment to the governing rules.
The High Court has not expressed any opinion on the merits of the allegations at this preliminary stage. The issuance of notice merely signifies that the Court has found the issues raised in the petition worthy of examination. The legality of the government's decision, the validity of the relaxation granted, and the reliefs sought by the petitioner will be determined after considering the responses of all parties during the subsequent hearings.
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