AP High Court admits petition against beer policy

By S A Ishaqui

Hyderabad,July 1: The High Court on Thursday admitted a writ petition challenging the new beer procurement policy of the State government. Skol Breweries Limited, manufacturers of Royal Challenge brand, challenged the new policy contending that the policy will reduce its present market share and encourages its competitors to increase their sales.

Mr D.V. Seetharama Murthy, advocate-general, in his additional affidavit alleged that the petitioner and the United Breweries, who are major suppliers of beer, virtually held the government to ransom by stopping the supply of beer for two consecutive years during the peak season of 2008-09 and 2009-2010.

He said it was the repetition of the earlier tactics during 2005-06 as part of their attempt to increase prices. He contended that the petitioner has no fundamental right to insist upon the government to frame such measures and policies so as to ensure stability of its market share.

He argued that the government has no obligation under law to ensure that the petitioner’s infrastructure was maintained at its optimal capacity. He said the new policy aims at allowing equality of opportunity to all the suppliers of beer in the state who could not have had such an opportunity by reason of the market conditions prevailing on the operation of old policy.

The petitioner’s counsel refuted the argument of the advocate-general by saying that stopping of supply in the past was not relevant to the present petition. He urged the court to grant interim order by staying the implementation of the new policy. The judge reserved the orders on the interim application to Monday.