Madras High Court Directs Regulation Of Recreational Clubs Selling Liquor

The Madras High Court observed that several recreational clubs in Tamil Nadu were functioning primarily as liquor shops, causing nuisance to local residents. 

A Bench directed that FL2 licenses be issued only after proper verification and stipulated that clubs must include liquor sale clauses in their byelaws. The Court mandated surprise inspections by police and excise authorities and allowed cancellation of registration for non-compliant clubs.

The court criticised government inaction, noting that many club owners were influential or politically connected.

The Court emphasised the State’s duty to maintain public health and uphold residents’ rights, warning that retail liquor sales under the guise of recreational clubs could not be routinely permitted.

[Perumal v. The Commissioner of Prohibition and Excise]