Ranchi, Feb. 22: The Federation of Jharkhand Chamber of Commerce and Industries (FJCC) is planning to move court against the state government's decision to take over the liquor business by running retail outlets as a means of augmenting excise revenue.

State-level coordination committee chairman of Federation of Jharkhand Chambers of Commerce and Industry (FJCCI) Pawan Sharma maintained that they had already contacted legal experts for guidance. "We will be challenging this order in Jharkhand High Court soon. Since it is a cabinet decision, only the high court's intervention can provide effective remedy," he told The Telegraph.

Yesterday, the state cabinet approved the government's move, reported first in The Telegraph on January 11, to run retail liquor outlets through Jharkhand State Beverage Corporation from August 1. Secretary of the excise and prohibition department Avinash Kumar said the idea was to address the shortfall in beverage revenue because of the operation of liquor cartels and tax evasion.

"The beverage corporation will run liquor shops across Jharkhand except in notified panchayats where tribals constitute over 50 per cent of the population," he said yesterday.

Kumar has always maintained that excise revenue target for the current fiscal was Rs 1,500 crore. However, the actual realisation was likely to be Rs 1,100 crore.

"By running retail liquor outlets directly, we hope to curb pilferage on the part of private retailers and generate more excise revenue in the coming years. In fact, Jharkhand has never managed to meet excise revenue targets," he explained.

Sharma, however, maintained that the government's move would lead to more revenue losses to the state exchequer, his argument finding many takers among members of the Jharkhand Wine Retailers Association.

Association secretary Ajay Sahu claimed that the Bihar government resorted to prohibition only after it could not run liquor outlets. He said the average monthly rent of each liquor shop ranges from Rs 50,000 to Rs 1 lakh. Profits too were negligible.

"In Ranchi district, the monthly license fee is Rs 512,000. An equal amount is taken as security deposit. Monthly and annual quotas of each shop fixed by the government. If a retailer is unable to avail of his quota of supplies, the excise revenue loss caused to the exchequer is recovered from his security deposit. Hence, the government can never claim that the retailers are responsible for excise revenue loss," he argued.

Sahu said retailers would soon hold a meeting to discuss future action plans.

JMM executive president and leader of the Opposition Hemant Soren also joined in the debate today, demanding total prohibition in Jharkhand and urged women champion the cause.

"Liquor ruins families. Tribal society is especially vulnerable. Women have to pay the price. Now this government is going to sell liquor directly, but to whose benefit? That needs to be investigated," he said.