Tamil Nadu revises Tasmac bar rules, permits separate bars within 100 meters

CHENNAI: Continuing reforms in the much-maligned liquor trade, the State government amended the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003, allowing Tasmac bars to operate at a location within 100 metres.

Earlier, it was mandatory that the bars should be adjacent to the liquor shop.

The government also increased the minimum plinth area for bars from 15 sqm to 20 sqm, and removed the provision that allowed Collectors to determine the plinth area for larger bars.

N Periyasamy of the Tasmac Employees Union said the amendment could address a long-standing issue faced by retail employees.

In many locations, Tasmac outlets function from within privately operated bar premises, leaving contract workers dependent on bar operators and vulnerable to intimidation, he said. In some instances, Periyasamy claimed, bar operators take liquor stock without settling payments immediately, creating scope for irregularities.

However, the union cautioned that the new arrangement could pose fresh enforcement challenges. With bars and retail outlets operating from separate premises, inspections would have to cover two locations instead of one. They alleged the system could create opportunities for illegal liquor sales unless strict monitoring is ensured.

Questions were also raised whether the revised minimum plinth area of 20 sq m (about 215 sq ft) would be adequate for a functional bar. Stakeholders say that a minimum area of around 500 sq ft would be more practical, as it would accommodate four or five tables and offer better facilities for customers.

Bar owners, meanwhile, opposed the move, saying liquor shops and bars should continue to function as an integrated unit. N Ambarasan, State president of the Tamil Nadu Tasmac Bar Owners and Employers Association, said, "Tasmac enabling new bidders with nearby properties to compete for licences would affect the bar owners who had invested in premises based on the existing model," he said, adding that the property owners will also try to remove the Tasmac from their premises if a bar is moved out.

"Tasmac retail outlets typically fetch only Rs 5,000 to Rs 15,000 a month in rent from the government, while bars generate rentals ranging from Rs 1 lakh to Rs 5 lakh," he noted.

Brands that received larger procurement orders enjoyed better shelf availability, leading to higher sales and, consequently, even larger procurement orders in subsequent cycles. While the revised formula removes that sales-linked allocation, beer manufacturers say it addresses only one part of the issue.

The revised formula currently applies only to beer and the mass market range of IMFS, while procurement of medium and premium IMFS will continue under the existing mechanism. Tasmac has also directed Elite and Mall outlets – which sell premium liquor – in the pilot districts to stock at least one case of every medium and premium brand to improve product availability. Despite repeated attempts, both over phone and in person, Tasmac officials did not respond to queries.