SECRETARY TO GOVT.,TAMIL NADU vs K. VINAYAGAMURTHY

The Supreme Court addressed the legality of the Tamil Nadu government's licensing policy for retail vending of Indian made foreign liquor under the Tamil Nadu Prohibition Act, 1937 and the Tamil Nadu Liquor (Retail Vending) Rules, 1989. The Court upheld the amendments made to the rules and clarified that the licensing authority must adhere to the established guidelines for selection and renewal of licenses, emphasizing the importance of maintaining the integrity of the licensing process. The Court ruled that the government's change in policy for the excise year 2002-2003 was valid, thereby allowing the increase in the number of retail shops in unserved areas.