“Good Decision”: Madras High Court Dismisses Plea Challenging TN Govt's Move To Close 717 TASMAC Shops

The Madras High Court has dismissed a plea challenging the recent press note of the Tamil Nadu Government regarding its decision to close 717 TASMAC liquor shops in the State, which are located within 500 meters of places of worship, educational institutions, and bus stands.

Calling it a good decision, Justice GR Swaminathan said that such policy decisions of the government could not be challenged by way of a writ petition by men who had leased their land for the setting up of TASMAC shops.

The court also recorded the submission of Advocate General Vijay Narayan, who informed the court that TASMAC would reimburse land owners, where the shops had been closed in furtherance of the policy decision.

The court thus dismissed the petition filed by two persons - P Saravanan and C Mathiarasan, both of whom had leased their property measuring 500 sq ft and 2200 sq ft respectively for setting up TASMAC shops in Chennai.

Saravan submitted that he had entered into a lease agreement with the District Manager (Chennai South District) on May 21, 2025, for a period of 11 months, which had been renewed for a further period of time. Similarly, Mathiarasan submitted that he had entered into a lease agreement in February 28, 2019 and it had been renewed till date.

The petitioners submitted that while entering into the agreement, they had made arrangements to make the premises conducive for liquor sale. It was submitted that in order to make these arrangements, they had taken debts and were under the legitimate expectation that monthly rents will be paid by the State.

While so, the petitioners argued that all of a sudden, the newly elected government led by TVK's Vijay, on May 12, 2026, published a press release through the Director, Department of Information and Public Relations informing that TASMAC shops situated within 500 meters will be closed. 

Arguing that the press release is an arbitrary exercise of executive power, the petitioners pointed out that, as per Section 54 of the Tamil Nadu Prohibition Act, all rules and notifications issued under the Act should be published in the official gazette. 

The petitioners further pointed out that, as per Rule 8(1) of the Tamil Nadu Liquor Retail Vending (In Shops and Bars) Rules, the TASMAC Shops shall not be established in Municipal Corporations and Municipalities within a distance of 50 (fifty) metres and in other areas 100 (hundred) metres from any place of worship or educational institutions.

The petitioners thus argued that the press release was against the Act and the Rules and was arbitrary and liable to be set aside. 

The state, on the other hand, questioned the locus of the petitioners to file a writ petition against the policy decision of the government. 

The court, after hearing the parties, noted that there was nothing arbitrary in the policy decision of the new government. The court thus dismissed the pleas.

Case Title: P Saravanan and Another v The State of Tamil Nadu

Case No: WP 20028 of 2026