Politics · India · 6 hrs ago
Tamil Nadu clubs and hotels challenge ₹10 liquor bottle cess
An association representing recreation clubs and star hotels in Tamil Nadu has challenged a liquor bottle buyback rule in the Madras High Court.
The petition targets a 2022 circular that set out how the empty-bottle return scheme would operate.
The scheme began after a court raised concerns about glass bottles being discarded in public places, fields and forests.
TASMAC shops initially charged ₹10 above the bottle price and refunded it when customers returned the empty bottle.
From November 1, 2026, that extra charge was replaced by a ₹10 environmental and social welfare cess, while reverse vending machines are planned to collect bottles and issue refunds.
The association says clubs and hotels could face business difficulties because customers may take bottles home, making returns hard to collect, and argues the circular was arbitrary.
The petition is expected to be heard by the Madras High Court on November 12.
Tamil Nadu’s recreation clubs and hotel association has challenged a ₹10-per-bottle cess linked to changes in the state’s empty liquor bottle buyback scheme.
The association says the cess has raised liquor bottle prices and will affect clubs and star hotels.
The Commissioner of Prohibition and Excise decided on October 29, 2026, to replace the earlier ₹10 charge-and-refund practice with a cess and reverse vending machines.
The new cess took effect on November 1, 2026.
The petition is expected to be heard by the Madras High Court on November 12, 2026.
- Who
- Tamil Nadu’s FL2, FL3 and Hotel Association filed the petition.
- What
- It challenges a 2022 circular on the empty liquor bottle buyback scheme and the ₹10-per-bottle cess.
- When
- The cess took effect on November 1, 2026. The hearing is expected on November 12.
- Where
- The Madras High Court, Tamil Nadu.
- Why
- The association says the cess raises prices and harms clubs and hotels, and says clubs cannot retrieve bottles from members’ homes.
Tamil Nadu FL2, FL3 and Hotel Association
Commissioner of Prohibition and Excise
Cess
Tamil Nadu FL2, FL3 and Hotel Association
The association says imposing a ₹10 cess through a higher MRP is arbitrary and will affect clubs and hotels.
Commissioner of Prohibition and Excise
The Commissioner decided to add a ₹10 environmental and social welfare cess to each bottle’s MRP.
Bottle returns
Tamil Nadu FL2, FL3 and Hotel Association
The association says clubs cannot follow members to their homes to collect empty bottles.
Commissioner of Prohibition and Excise
The scheme provides for reverse vending machines to collect empty bottles and refund ₹10 per bottle.
The Commissioner of Prohibition and Excise issued a circular to implement the empty liquor bottle buyback scheme.
The Commissioner decided to end the practice of collecting ₹10 above the MRP and instead impose a ₹10 cess, with reverse vending machines planned.
The ₹10-per-bottle cess took effect.
The Hindu reported that the association had filed a petition in the Madras High Court.
The petition is expected to be heard by Justice N. Senthilkumar.
- Cess
- ₹10 per bottle
- Effective date
- November 1, 2026
- Circular challenged
- August 2, 2022
- Court
- Madras High Court
- Hearing expected
- November 12, 2026
What people are saying
Clubs also cannot follow their members to their private residences to collect the empty bottles and surrender them to TASMAC.