Big decision of the Supreme Court! An immediate break to the ‘ban’ on sale of liquor within 500 meters from the highway

• Liquor shops on the highway saved immediately!
• Supreme Court stays order to remove shops within 500 meters radius
• What exactly is the case?

New Delhi: Rajasthan High Court’s interim order to remove liquor shops within 500 meters of national and state highways Supreme Court Adjourned on Monday. The decision has given a major legal relief to the owners of 1,102 liquor shops along the highway and the state government.

What exactly is the background?

A landmark order was issued on 24 November 2025 by the Jodhpur Bench of the Rajasthan High Court. During the hearing of the case ‘Kanhaiya Lal Soni v. State of Rajasthan’, Justice Pushpendra Singh Bhati and Justice Sanjit Purohit expressed serious concern over road accidents. Stating that accidents increase as liquor is easily available near highways, the court had directed to identify and relocate all liquor shops within 500 meters of municipal and urban local bodies.

What happened in the Supreme Court argument?

The High Court’s order was challenged by the Rajasthan government and the liquor licensees in the Supreme Court through a Special Leave Petition (SLP). Solicitor General Tushar Mehta and Additional Solicitor General Shiv Mangal Sharma argued that the order passed by the High Court was in violation of the Supreme Court’s ‘State of Tamil Nadu v. K. Balu’ is against the guidelines of this historic case. The Supreme Court by its orders dated 31st March 2017, 11th July 2017 and 23rd February 2018 had relaxed the original rules to some extent.

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Legal embarrassment

It was argued by the government that the High Court cannot use Article 226 to invalidate a law declared by the Supreme Court under Article 141. Senior advocate Mukul Rohatgi also emphasized on the same points on behalf of the liquor businessmen.

Interim order of Supreme Court

After hearing all the parties, a bench of Justices Vikram Nath and Sandeep Mehta granted an interim stay on the High Court’s order. “The matter will be heard in depth only after recording the detailed responses of all the parties,” the court clarified. Due to this decision, these shops will continue in the same place immediately.

Concerns of the High Court and the question of revenue

The High Court in its order emphasized on the human loss caused by road accidents. Citing Article 21 (right to life) of the Constitution, the court had said public safety was more important than the potential revenue loss of Rs 2,100 crore. The High Court had also stated that the Supreme Court’s security standards cannot be relaxed on the basis of urban sprawl. However, now due to the adjournment of the Supreme Court, this case has taken a new turn, and the next hearing will be important to get legal clarity regarding the liquor sale policy along the highway.

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