1. Supreme Court order removing ban in city limits lifts liquor companies spirits

Supreme Court order removing ban in city limits lifts liquor companies spirits

Shares of Indian breweries and distilleries companies rallied on Thursday after the Supreme Court of India clarified that the highway ban on liquor sale imposed by it is not applicable to licensed bars and beverages outlets within the municipal area.

By: | Published: August 24, 2017 2:49 PM
The major gainers were the Globus Spirits and Tilaknagar Industries which advanced 14.88% and 7.63% respectively. (Image: Reuters)

Shares of Indian breweries and distilleries companies rallied on Thursday after the Supreme Court of India clarified that the highway ban on liquor sale imposed by it is not applicable to licensed bars and beverages outlets within the municipal area — in bounds of the city. The stock of most of the liquor manufacturing companies surged today including United Spirits which gained 5.51% to the day’s high of Rs 2,607.9 while United Breweries rose 1.93% to the day’s high of Rs 820. The major gainers were the Globus Spirits and Tilaknagar Industries which advanced 14.88% and 7.63% respectively.

Other liquor stocks which gained during the day includes, Khoday India (up 5%), Ravi Kumar Distilleries (up 3%), Chambal Brewery (up 4.73%), Pioneer Distilleries (up 3.5%), IFB Agro (up 0.6%), Som Distilleries (up 4.6%), GM Breweries (up 7.4%), Associated Alcohol and Breweries (up 10%), Radico Khaitan (up 2.16%), Pincon Spirit (up 10%), Jagatjit Industries (up 4.6%), Empee Distilleries (up 3.15%) and Winsome Breweries (up 3.5%).

The Supreme Court bench of Chief Justice JS Khehar and Justices DY Chandrachud and Nageswara Rao made the clarification yesterday that the liquor ban on highways did not apply to licensed establishments falling within municipal areas.

“The purpose of the directions contained in the order dated 15 December 2016 is to deal with the sale of liquor along and in the proximity of highways properly understood, which provides connectivity between cities, towns, and villages. The order does not prohibit licensed establishments within municipal areas. This clarification shall govern other municipal areas as well. We have considered it appropriate to issue this clarification to set at rest any ambiguity and to obviate repeated recourse to IAs before the Court” stated an order by a Supreme Court bench, headed by Chief Justice Jagdish Singh Khehar.

The pressure on liquor stocks is into effect after the Supreme Court in its 15 December 2016 judgement had banned the sale of liquor within 500 meters from the edge of the national and state highways which came into effect from 2 April this year. However, later today, Supreme Court exempted Arunachal Pradesh and Andaman and the Nicobar Islands from the 500-metre cap on liquor vends along highways.

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