Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Keralam Excise department has banned the issuance of new liquor licences, including for bars and wine and beer parlours, until the United Democratic Front (UDF) government promulgates its alcohol policy for the 2026-27 fiscal year on November 30. This decision, conveyed through a circular by Additional Excise Commissioner (Enforcement) R Jayasankar, who holds the charge of Excise Commissioner, specifically bars Deputy Commissioners from issuing new bar licences, even for establishments with four-star hotel classification seeking to sell hard spirits. This development follows a political controversy where the government shifted Sreeram Samabasiva Rao from the Excise Commissioner’s post due to the department’s “hasty” reclassification of some bars and beer parlours and the “instantaneous” approval for private players to open lounge bars at Cochin International Airport Limited (CIAL), with the government subsequently cancelling these renewed licences.
This situation highlights critical aspects of Polity & Governance relevant for Banking, SSC, and RBI Grade B exams. It demonstrates the interplay between administrative bodies (Excise department) and the elected government, showcasing instances of alleged overreach by the bureaucracy and the government’s subsequent corrective actions. The incident also underscores the political sensitivity surrounding liquor policies, particularly with the UDF government being wary of incensing its prohibitionist base. Furthermore, the discussion around reversing the previous Left Democratic Front (LDF) dispensation’s decision to vest licensing authority with Excise Deputy Commissioners and mandating ministerial sanction for fresh alcohol permits illustrates shifts in governance approaches and accountability mechanisms within state administration. The perceived selectivity in granting licences, with 29 applications pending, also points to issues of transparency and fairness in administrative processes, all of which are crucial for understanding the functioning of government at various levels.
Source: The Hindu
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