PIL Filed In Kerala High Court Against Relaxation Of Star-Rating Norms For Bar Licence Renewals

A Government communication dated February 13, 2026, issued by the Additional Chief Secretary (Taxes), which allegedly directed the Excise Commissioner to renew bar licences for the 2026-27 financial year based on pending applications for hotel reclassification rather than existing star certification is challenged before the Court.

According to the petitioner, Rule 13(3) of the Foreign Liquor Rules requires hotels to possess a valid and subsisting three-star or higher classification from the Ministry of Tourism before an FL-3 bar licence can be granted or renewed. It is contended that the impugned communication effectively relaxes this statutory requirement through an executive order, which it argues is legally impermissible.

The petition alleges that the Government justified the relaxation on the ground of delays in the hotel reclassification process by the Ministry of Tourism. However, it relies on a letter dated February 28, 2025, from the Ministry's Regional Director stating that delays were attributable to hotels seeking postponement of mandatory inspections rather than any administrative backlog.

The PIL further alleges that documents obtained under the Right to Information Act reveal a sequence of events beginning with a representation from the Federation of Kerala Hotel Association seeking relaxation of the rule, followed by correspondence from the office of the Excise Minister directing officials to facilitate licence renewals.

The petitioner has also relied on a 2024 Compliance Audit Report of the Comptroller and Auditor General (CAG), which, according to the petition, found that renewal of bar licences without valid star classification amounted to an "irregular" grant in violation of mandatory licensing conditions. The PIL contends that the Government ignored both the CAG's findings and an earlier Excise Commissioner's circular issued in March 2025 directing officers not to entertain renewal applications without valid star classification certificates.

The petition also raises concerns regarding the rapid increase in licensed bar hotels in Kerala and argues that relaxation of licensing norms could adversely affect public health and safety. The petition further invokes Article 47 of the Constitution, which directs the State to endeavour to prohibit the consumption of intoxicating drinks injurious to health.

The petition seeks to quash the February 13 Government communication, direct strict enforcement of Rule 13(3) of the Foreign Liquor Rules, and order a Central Bureau of Investigation (CBI) probe into the circumstances leading to the issuance of the communication. An interim stay on the operation of the Government order has also been sought pending disposal of the case.

Case Title: M. M Sanjeev Kumar v State of Kerala

Case No: WP(PIL) 137/ 2026

Counsel for Petitioner: Radhakrishnan. R