Relief for liquor vends: Supreme Court stays Rajasthan HC order for removal of stores within 500m of highways

The Supreme Court on Monday stayed a Rajasthan High Court order directing the state to remove or relocate all liquor shops within 500 metres of national or state highways, after liquor vendors and the state government challenged the ruling.

A bench of Justices Vikram Nath and Sandeep Mehta issued notice on multiple petitions and said the high court order would remain suspended for now.

“Issue notice. The effect and operation of the impugned order is stayed,” the bench said, while adding that the high court’s concern over road safety was “genuine” and could be considered by the state while framing future liquor policy.

The stay comes against a November 24, 2025 order of the Jodhpur bench of the Rajasthan High Court, which had directed the removal or relocation of all liquor shops within 500 metres of national and state highways within two months, even if they fell within municipal limits or local self-governing bodies.

Solicitor General Tushar Mehta, appearing for the Rajasthan government, told the court that while the Supreme Court had in 2016 barred liquor vends within 500 metres of highways, it later clarified that the restriction did not apply within municipal limits.

Senior advocate Mukul Rohatgi, representing liquor shop owners, said the high court erred in issuing statewide directions without hearing affected parties.

He argued that the court was hearing a case related to a single village, Sujangarh, but went on to pass an order qua the entire state.

Rohatgi contended that the ruling directly conflicted with Supreme Court directions exempting municipal areas from the highway liquor ban.

On November 24, 2025, the Jodhpur bench of the high court, taking note of the increasing number of accidents on the highways on account of alcohol consumption, directed the state to remove or relocate all liquor shops falling within the restricted limit of 500 metres from a national or state highway, within two months, irrespective of them falling under any municipal areas, local self-governing bodies or statutory development authorities.

The court relied on the Supreme Court’s 2016 ruling in State of Tamil Nadu versus K Balu, which prohibited liquor shops within 500 metres of highways to improve road safety.

While clarifying the order in 2017, the apex court allowed states discretion to permit liquor shops within municipal limits and decide whether the restriction should extend to areas under local bodies or development authorities.

In an affidavit before the high court, the Rajasthan government said it had allowed 1,102 liquor shops along national and state highways as they fell within municipal or local body limits.

The high court criticised the state for prioritising revenue over public safety, saying the constitutional objective of safeguarding human life cannot be subordinated to revenue considerations.

“The admitted operation of 1,102 liquor shops on national and state highways effectively nullifies the safety objective underlying the apex court’s orders,” the court said, citing alarming accident statistics in the state.