Over 400 bars in Kerala may have to down shutters at 11 pm on Thursday.
The deadline for over 400 bars in Kerala, whose licenses are set to be cancelled by the state government, is just a few hours away.
The bar owners, who moved the Supreme Court against the state government's decision, are now hoping that the court, which will take up the issue today, will provide them some relief.
"We will seal all the bars after 11 pm on Thursday. The bars had been given a 15-day notice; the Excise Department will take into custody all excess liquor," said Excise Minister K Babu.
Not only are bar attendants at risk of losing their jobs, workers in other departments like house-keeping and kitchen may also lose their jobs as the revenues of hotels is bound to be hit badly once they are prevented from selling alcohol.
Industry insiders say that Kerala tourism's popular MICE model -- with a focus on meeting, incentives, conferences and events - may soon be a thing of history, with cancellations already pouring in.
Hotels and bar associations have claimed that the policy is biased and it favours government outlets.
Jose Dominique, a member of the National Tourism Council, says, "The more barricades we create, the more it is going to divert and prevent investments. Everything is going to be put on standstill".
The government's rehabilitation plan caters only to bar workers registered with the government - nearly 15,000 people -- leaving the others to fend for themselves and their families. But the state government's compensation plan is yet to be finalised.
The Kerala government has announced a 5 per cent excess cess on Indian-made foreign liquor to garner funds for the rehabilitation packages.
Once the new policy comes into effect, alcohol will be available only in government-owned beverage corporations, infamous for their long lines.
While beer and wine parlours will be allowed to operate in hotels with 3 stars and above, an exception has been made for the 44 main tourism destinations across Kerala, where hotels with even one star are being allowed to apply for licenses to sell wine and beer.
The loss of an estimated Rs 7,000 to 8,000 crore in revenue could well turn out to be the neighbour's gain in this case; the sale of alcohol in border areas of Tamil Nadu like Kanyakumari, Coimbatore and Theni is expected to rise as Kerala goes dry.