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Madras High Court Warns Tasmac Against Overcharging Liquor Buyers

Madras High Court Warns Tasmac Against Overcharging Liquor Buyers

The Madras High Court in Chennai has issued a stern warning to the Tamil Nadu State Marketing Corporation (Tasmac), declaring that the state-run liquor retailer has no authority or license to overcharge consumers.

On Friday, a special bench consisting of Justice N Sathish Kumar and Justice D Bharatha Chakravarthy clarified that a previous court order allowing Tasmac to collect an additional Rs 10 for returning empty liquor bottles must not be misused. The court emphasized that this collection was meant strictly as a refundable deposit to encourage recycling, rather than an excuse to charge customers above the Maximum Retail Price (MRP).

The bench noted that the additional Rs 10 charge was permitted specifically to incentivize the returning of empty bottles. However, the court observed that this measure has been misconceived by personnel as a license to demand extra money from tipplers.

To rectify this, the judges directed that the Rs 10 deposit must be clearly recorded as part of the customer's bill. The amount must then be returned in full to the buyers when they bring back the empty bottles to the retail outlets.

During the court proceedings on Friday, the Tamil Nadu state government presented its response to the issues surrounding the collection scheme. State representatives informed the High Court that the government is currently planning a complete revamp of the empty liquor bottle buyback scheme.

As part of this upcoming overhaul, the state is actively exploring alternative methods to collect the empty bottles so that Tasmac staff do not have to be used for the task. The government also reiterated its stance to the bench, stating that it maintains a policy of zero tolerance towards corruption in the operation of these retail outlets.

This judicial warning is expected to lead to stricter regulation and monitoring of liquor prices across Tasmac shops in the state, ensuring that consumers are not subjected to illegal overcharging under the guise of the bottle return policy.

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