Raj HC upholds Excise Policy 2025–2029, declines to interfere with clustering and auction of liquor shops

Jaipur/Jodhpur: The Rajasthan High Court has declined to interfere with the Excise & Temperance Policy 2025–2029 and the State’s decision to cluster liquor shops for auction, holding that trade in liquor is a regulated privilege and the State enjoys wide latitude in framing policy governing such trade.

The Division Bench of Justice Dr. Pushpendra Singh Bhati and Justice Sandeep Shah delivered the ruling while deciding a batch of writ petitions led by D.B. Civil Writ Petition No. 6017/2025, Jamana vs State of Rajasthan & Ors. along with several connected matters.

The petitions challenged clauses 2.2.6, 2.2.7 and 2.2.8 of the Excise & Temperance Policy 2025–2029, under which the State introduced a mechanism for renewal of liquor shop licences and clustering of unrenewed shops for auction. The petitioners, who were licensees of retail liquor vends in various districts, sought quashing of the policy provisions and directions to renew their licences.

The petitioners contended that the policy permitted clustering of shops and auctioning them even in situations where more than 70 percent of the shops in a district had already been renewed. According to them, this resulted in arbitrary grouping of viable shops with unlifted or non-viable ones, thereby depriving existing licensees of the opportunity to continue their business.

It was further argued that the formation of clusters lacked transparency, as the policy allowed grouping of one to five contiguous shops without disclosing objective criteria regarding contiguity, revenue potential, or the basis for grouping particular shops together. The petitioners also alleged that finalized cluster lists were not publicly disclosed before issuance of the auction notice dated February 25, 2025.

The State opposed the petitions and argued that the challenge was misconceived both on facts and in law. The State submitted that the petitioners had an alternative statutory remedy of appeal under Section 9A of the Rajasthan Excise Act, 1950 before the Excise Commissioner against orders relating to cancellation or non-renewal of licences.

The State further contended that the trade in liquor is not a fundamental right but merely a privilege regulated by the State. It was submitted that under Section 37 of the Rajasthan Excise Act, a licensee has no vested right to renewal of a licence, and the State is fully empowered to regulate the grant, renewal, or auction of liquor vends in accordance with public policy.

After hearing the parties, the Court noted that the Excise Policy is a policy decision taken by the State in exercise of its regulatory powers over liquor trade. The Bench observed that courts ordinarily refrain from interfering in such policy matters unless they are shown to be manifestly arbitrary, discriminatory, or contrary to statutory provisions.

The Court found that the clustering mechanism introduced by the State formed part of the policy framework designed to manage the licensing and auction of liquor shops. The petitioners failed to establish that the impugned clauses of the policy were unconstitutional or in violation of the provisions of the Rajasthan Excise Act.

The Bench also observed that the petitioners had not demonstrated any enforceable legal right to renewal of their licences, nor had they shown that the policy was implemented in a manner that violated the equality guarantees under Articles 14 or 19 of the Constitution.

Holding that no ground was made out for interference in exercise of writ jurisdiction under Article 226 of the Constitution, the High Court dismissed the batch of petitions challenging the Excise Policy and the auction process.

Case Title
Jamana vs State of Rajasthan & Ors. (Lead Case)

Case Number
D.B. Civil Writ Petition No. 6017/2025 (with connected matters)

Court
High Court of Judicature for Rajasthan, Bench at Jodhpur

Bench
Hon’ble Dr. Justice Pushpendra Singh Bhati
Hon’ble Mr. Justice Sandeep Shah

Date of Order
06 March 2026

Advocates
For the Petitioners:
Various counsel appearing in the batch matters

For the Respondents:
Learned Additional Advocate General for the State of Rajasthan

Judgments / Legal Principles Relied Upon
Liquor trade is not a fundamental right and is a privilege regulated by the State under the Rajasthan Excise Act, 1950.