Telangana High Court stays special privilege fee for bars and restaurants

The Telangana High Court has issued an interim stay on the collection of a newly introduced Special Privilege Fee for bars and restaurants across the state. The order provides relief to 114 establishments that challenged the legality of the government mandate.

The petitioners, including businesses such as Surya Restaurant and Bar, argued that the Excise Department lacked the statutory authority to impose the fee under the Telangana Excise Act. They contended that the decision, outlined in Government Order No. 205 issued on October 19, lacked a proper legal basis.

In response, the Excise Department argued that license holders had previously submitted undertakings agreeing to pay any future fees imposed by the government. The High Court has directed the Excise Department and the Telangana State Beverages Corporation Limited to refrain from collecting the fee and has ordered both entities to submit detailed counter-affidavits explaining the legal grounds for the charge. The matter is scheduled for a hearing in four weeks.