TAMIL NADU PROHIBITION (AMENDMENT) ACT, 2003 THE TAMIL NADU
PROHIBITION (AMENDMENT) ACT, 2003[1] [ Act No. 31 of 2003] An Act further to
amend the Tamil Nadu Prohibition Act, 1937. BE
it enacted by the Legislative Assembly of the State of Tamil Nadu in the
Fifty-fourth Year of the Republic of India as follows: Statement of Objects
and Reasons[2] In
order to completely eliminate the sale of contraband, spurious and non-duty
paid liquor in licensed premises under the system of retail vending by private
persons which can affect the public health of the liquor consuming public and
widespread violations of Maximum Retail Price (MRP) of liquor fixed by the
Government, both of which also cause loss of revenue to the Government, and in
order to curb the organised groups and cartels who act in groups to ensure that
applications are not made for substantially large number of shops so as to keep
them vacant and thereby to corner the retail vending trade causing loss of
revenue to the Government, it is considered necessary to grant the exclusive
privilege of retail vending of Indian-made Foreign Spirits to the State owned
Public Sector Undertaking TASMAC and through TASMAC to the agency of the Co-operatives. 2.
The Government have decided to amend the Tamil Nadu Prohibition Act, 1937
(Tamil Nadu Act X of 1937) for the above purpose. Accordingly, the Tamil Nadu
Prohibition (Amendment) Ordinance, 2003 (Tamil Nadu Ordinance 8 of 2003) was
promulgated by the Governor on the 26th October 2003 and the same was published
in the Tamil Nadu Government Gazette Extraordinary, dated the 26th October
2003. 3.
The Bill seeks to replace the said Ordinance. Financial Memorandum[3]
Preamble - THE TAMIL NADU PROHIBITION
(AMENDMENT) ACT, 2003PREAMBLE
The
Bill when enacted, will involve expenditure from the Consolidated Fund of the
State. It is not, however, possible at this stage to estimate with any degree
of accuracy the expenditure to be incurred as a result of the proposed
legislation.
Memorandum regarding
Delegated Legislation[4]
Clause
(b) of new sub-section (1-B) of Section 17-C and item (i) of Clause (d) of new
Section 22-D sought to be incorporated in the Tamil Nadu Prohibition Act, 1937
(Tamil Nadu Act X of 1937) by Clauses 2 and 3 of the Bill empower the
Government to make Rules for the purposes specified therein.
2.
The powers delegated are normal and not of an exceptional character.
Section 1 - Short title and commencement
(1) This Act may be called the Tamil Nadu Prohibition
(Amendment) Act, 2003.
(2) It shall be deemed to have come into force on the
26th day of October, 2003.
Section 2 - Amendment of Section 17-C
In
Sec.l7-C of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937)
(hereinafter referred to as the Principal Act), after sub-section (1-A), the
following sub-section shall be inserted, namely?
"(1-B) (a) Notwithstanding anything contained
in this Act, the Tamil Nadu State Marketing Corporation Limited, which is a
Corporation wholly owned and controlled by the State Government, shall have the
exclusive privilege of selling, by retail, Indian-made foreign spirits, for the
whole of the State of Tamil Nadu and no other person shall be entitled to any
privilege of selling, by retail, Indian-made foreign spirits for the whole or
any part of the State.
(b) ??Notwithstanding
anything contained in this Act, Tamil Nadu State Marketing Corporation Limited
shall be granted the licence by the Commissioner for the exercise of the exclusive
privilege referred to in clause (a) and such licence shall be subject to the
rules made by the State Government in this behalf and to such conditions and
restrictions as the Commissioner may, from time to time specify.
(c) (i) The Tamil Nadu
State Marketing Corporation Limited shall, as soon as may be, after the grant
of the licence under clause (b) for the exercise of the exclusive privilege
referred to in clause (a), fix, locate and open as many shops as may be
necessary to effectively carry on the business of sale, by retail of Indian
made foreign spirits in the State and the said Corporation in so fixing the
shops, shall take into account the population of the locality, the needs of the
locality and other relevant factors.
(ii) ??The
Tamil Nadu State Marketing Corporation Limited shall carry on the business of
selling, by retail, Indian-made foreign spirits?
(A) either directly by the said Corporation; or
(B) through Co-operative Societies appointed by the
said Corporation as agents to act on its behalf and on such terms and
conditions as the said Corporation may specify; or
(C) by both the methods specified in sub-items (A) and
(B) of this item.
(iii) ??Any
dispute between the said Corporation and the Co-operative Society, appointed as
Its agent, in respect of any matter shall be referred to the Commissioner or an
officer not below the rank of District Revenue Officer specially empowered by
the State Government in this behalf, whose decision thereon shall be final and
such decision shall not be called in question in any Court.
Explanation:
For the purposes of this Act, a Co-operative Society, appointed as agent by the
Tamil Nadu State Marketing Corporation Limited for selling on its behalf, by
retail, Indian-made foreign spirits shall not be deemed to be exercising any
privilege of selling, by retail, Indian-made foreign spirits and accordingly
the provisions of this Act relating to the grant of such privilege and licence
for selling, by retail, Indian made foreign spirits shall not apply to such
agent.
Section 3 - Insertion of new Section 22-D
After
Section 22-D of the Principal Act, the following Section shall be inserted,
namely:
"22-D.
Licence granted for selling, by retail, Indian-made foreign spirits to cease to
be valid: (a) Notwithstanding anything contained in this Act or in any judgment
decree or order of any Court, every licence granted or renewed in respect of
any privilege of selling, by retail, Indian-made foreign spirits (other than
the licence granted or renewed for supply in hotels, clubs and stores and
depots run by the Defence Department, Government of India) and which is valid
on the 26th day of October, 2003 shall cease to be valid on the expiry of the
28th day of November, 2003 on which date the validity of the said licence
shall, under the existing rules, expire and any licence renewed for any period
beyond 28th day of November, 2003 shall cease to be valid and in such cases all
fees (including the licence fee and the privilege amount) paid for renewal of
licence shall be refunded.
(b) ???Notwithstanding
anything contained in this Act or in any judgment, decree or order of any
Court, every application made for the grant or renewal of licence for selling,
by retail, Indian-made foreign spirits and pending before the Commissioner or
before the State Government or any other authority on the 26th day of October, 2003
and every action taken, or enquiry made, in respect of such application, shall
abate and all fees in connection with such application (including the
application fee and the licence fee, if any), already paid shall be
refunded.
(c) ???The
Tamil Nadu Liquor (Retail Vending) Rules, 1989 and the Tamil Nadu Liquor (Retail Vending in Bar) Rules,
2002 are hereby repealed with effect from the 29th day of November, 2003:
Provided
that such repeal shall not affect any offence committed or any fine, penalty or forfeiture incurred
before the 29th day of November, 2003.
(d) (i) Notwithstanding
anything contained in sub-section (1-B) of Sec.17-C and without prejudice to
the provisions contained in Sec.54, the State Government may make rules for
grant of licences to such hotels, clubs and stores and depots run by the
Defence Department, Government of India, as may be prescribed and for the
purpose of carrying into effect the provision of this Section and sub-section
(1-B) of Sec.l7-C.
(ii) ??Within
a period of one month commencing on and from the 29th day of November, 2003,
the State Government shall, on payment of the price, take over the entire stock
of Indian-made foreign spirits, if any, which on the 29th day of November,
2003, is in possession of any holder of a licence which shall cease to be valid
under clause (a).
Explanation:
For the purposes of item (ii) of this clause, the expression "stock of
Indian-made foreign, spirits" shall include stocks in movement on the 29th
day of November, 2003, consequent on the orders placed by such holder with the
suppliers in pursuance of permits granted by the Competent Authority under this
Act.".
Section 4 - Repeal and saving
(1) The Tamil Nadu Prohibition (Amendment) Ordinance,
2003 (Tamil Nadu Ordinance 8 of 2003) is hereby repealed.
(2)
Notwithstanding
such repeal, anything done or any action taken under the Principal Act, as
amended by the said Ordinance, shall be deemed to have been done or taken under
Principal Act, as amended by this Act.