THE HON’BLE SRI JUSTICE N.V. RAMANA W.P. No. 18373 of 2008 O r d e r: The petitioners state that they, apart from two others, being the successful auction bidders in respect of four IMFL shops in Kadiyam village for Rs.2,25,00,000/-, were given licences to sell IMFL, for the period valid from 01.07.2008 to 30.06.2010. During 2007, the petitioners state that when respondent No.4 applied to respondent No.1 for issuance of Bar and Restaurant licence, and when proposals were being processed, some residents of Kadiyapulanka village, filed writ petition in W.P. No. 22057 of 2007 questioning the said proposals. In the counter filed in the said writ petition, the petitioners state that the respondents had taken a stand that respondent No.3 who conducted an enquiry into the complaints against issuance of Bar and Restaurant licence to respondent No.4, submitted report stating that if the Bar and Restaurant licence is given to respondent No.4, then the existing four IMFL shops would be put to loss, and recommended against issuance of any prior clearance for establishment of Bar and Restaurant by respondent No.4. However, without considering the said report and without application of mind, the petitioners state that respondent No.1 has issued proceedings dated 15.07.2008, giving prior clearance to respondent No.4 for establishment of Bar and Restaurant in Kadiyapulanka village. Questioning the said proceedings, the petitioners filed the present writ petition. The learned counsel for the petitioners submitted that as per Rule 4 of the A.P. Excise (Grant of Licence of Selling by Bar and Conditions of Licence) Rules, 2005 (herein referedd to as the Bar Rules”), licenses to run a Bar and Restaurant can be granted to an establishment functioning in Municipalities and with a belt area of 2 Kms. of the periphery of such Municipalities, Municipal Corporations and within a belt area of 5 Kms. of the periphery of such Municipal Corporations, and in Tourism Centres (except places of religious tourism) as notified by the Department of Tourism of the State Government or Central Government. He submitted that Kadiyapulanka village is neither a Municipality nor a Municipal Corporation nor a Tourist Centre, notified by the Department of Tourism of the State Government or Central Government, respondent No.1 could not have granted impugned prior clearance to respondent No.4 to establish a Bar and Restaurant in Kadiyapulanka village, and as such, granting of such prior clearance by respondent No.1 to respondent No.4, is illegal and arbitrary. He relied on Tourism Policy, 2006 to show that Kadiyapulanka village is not notified as a Tourist Centre. He further submitted that Bar and Restaurant licences have to be granted only to the existing IMFL shops and not new shops, and as such, granting prior clearance to respondent No.4 to establish Bar and Restaurant is illegal and arbitrary. Hence, he prayed that the impugned Bar and Restaurant licence granted by respondent No.1 to respondent No.4 be quashed and set aside. This Court by order dated 08.09.2008, while admitting the writ petition, granted interim direction to the effect that the licence, if any, granted shall be subject to the result of the writ petition, and therefore, directed maintenance of status quo. On behalf of respondent Nos. 1 to 3, respondent No.2 filed counter to the writ petition and additional counter in reply to the additional affidavit filed by petitioner No.1. The learned Government Pleader for Prohibition and Excise reiterating the counter averments submitted that respondent No.1 treating Kadiyapulanka village as a notified Tourist Centre, granted prior clearance to respondent No.4 on 15.07.2008, but no licence was granted, and in fact, pending clarification from the Tourism Department of the State Government as to whether Kadiyapulanka village, is notified as a Tourist Centre, the prior clearance granted to respondent No.4 was kept in abeyance vide orders dated 28.08.2008 of respondent No.1, who on the very same day also addressed a letter to the Principal Secretary to the Government, Tourism Department, requesting him to clarify whether Kadiyapulanka village, is notified as a Tourist Centre. In response thereto, the Youth Advancement, Tourism and Cultural Department, vide Memo dated 25.10.2008 clarified that s per G.O. Ms. No.30, Youth Advancement, Tourism and Culture (T) Department, dated 20.03.2003, Kadiyapulanka in East Godavari District, is notified as a Tourism Centre under the Tourism Policy, 1998. Hence, he submitted that no exception can be taken to the impugned prior clearance given to respondent No.4. Hence, he prayed that the writ petition be dismissed. Respondent No.4 also filed counter, justifying the grant of prior clearance in his favour, and supported the arguments of the learned Government Pleader for Prohibition and Excise, as noted above. Heard the learned counsel for the petitioners, the learned Government Pleader for Prohibition and Excise for respondent Nos. 1 to 3 and the learned counsel for respondent No.4. The main contention of the petitioners is that since Kadiyapulanka village is neither a Municipality nor a Municipal Corporation nor a Tourism Centre, notified by the Department of Tourism of the State Government or Central Government, respondent No.1 could not have issued the impugned proceedings granting prior clearance to respondent No.4 to establish a Bar and Restaurant in Kadiyapulanka village. This contention of the petitioners cannot be accepted. Admittedly, Kadiyapulanka is neither a Municipality nor a Municipal Corporation, and as such, the question of granting licence to establish a Bar and Restaurant in Kadiyapulanka village, treating the said village as a Municipality or a Municipal Corporation, is ruled out. However, Rule 4 of the Bar Rules, apart from granting licences in Municipalities and Municipal Corporations and within 2 Kms. and 5 Kms. respectively of such Municipalities and Municipal Corporations, also provides grant of licence in Tourism Centres (except places of religious tourism) as notified by the Department of Tourism of the State Government or Central Government. Admittedly, respondent No.1 treating Kadiyapulanka as a notified Tourist Centre, has granted prior clearance to respondent No.4 to establish a Bar and Restaurant. It is the contention of the petitioners that Kadiyapulanka is not a notified Tourism Centre, and in support thereof, placed reliance on A.P. Tourism Policy, 2006 wherein in Annexure – I, the name of Kadiyapulanka is not shown as a Tourism Centre. However, respondent No.1 after granting the impugned prior clearance to respondent No.4, to establish a Bar and Restaurant, has entertained a doubt as to whether Kadiyapulanka village is a notified Tourist Centre, and vide orders dated 28.08.2008, placed the said proceedings, granting prior clearance under abeyance, and simultaneously on the very same day, addressed a letter to the Principal Secretary to the Government, Tourism Department, requesting him to clarify whether Kadiyapulanka is a notified Tourism Centre. In reply thereto, the Youth Advancement, Tourism and Cultural Department, vide Memo dated 25.10.2008 clarified that as per G.O. Ms. No. 30, Youth Advancement, Tourism and Culture (T) Department, dated 20.03.2003, Kadiyapulanka in East Godavari District is notified as a Tourism Department under the Tourism Policy, 1998. Since the Government had clarified that Kadiyapulanka was notified as a Tourism Centre vide G.O. Ms. No. 30, dated 20.03.2003, no exception can be taken to the impugned proceedings issued by the respondent No.1 granting prior clearance to respondent No.4 to establish a Bar and Restaurant in Kadiyapulanka village, treating the said village as a Tourist Centre. The contention of the petitioners that Bar and Restaurant licences can be granted only to the existing shops and not new ones cannot be accepted, because it is for the government to consider based on the licensing policy keeping in view the population and needs of the area. For the foregoing reasons, there is no merit in the writ petition, and the same is accordingly dismissed. No costs. _________________ N.V. RAMANA, J. Date: February, 2009 KSR