31 December,2009 07:02 AM IST | | Urvashi Seth
Deadline for both music and drinking at restaurants has been extended for New Year's You're Safe With Me: On the day before New Year's eve, a policeman patrols the sea at Cuffe Parade. Hundreds of policemen will be out on the streets today to prevent any disaster.
Yet another victory for party-happy Mumbaikars as they bring in 2010 today.
The 3 am deadline for music has been scrapped and merged with the 5 am deadline for serving alcohol on the basis of a writ petition in the High Court yesterday.
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In other words, your party at a public place hotel, restaurant, pub, bar can continue unhindered, unhampered by the police till 5 am. Just for one day, today.
Apart from the merriment, the decision also means a direct and substantial addition to the state revenue and
the profits of the hospitality industry.
Good Decision
Said Narayan Alva, president of the Indian Hotel and Restaurant Association (AHAR), "I am really happy that the decision was made in our favour as we have incurred a huge loss last year after the 26/11 terror attacks.
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Everyone wants to bring in the New Year and party late and quite naturally, the hospitality industry wants to make good the losses incurred throughout the year. The decision will certainly add to our profit line."
Said Chandrahas Shetty, owner of an Andheri-based restaurant and advisor to AHAR, "This would bring in extra revenue to the state and the hospitality industry too."
Here's why. The existing deadline to shut bars is 1.30 am. Extending the deadline by three and a half hours means an astounding earning (excise revenue and VAT) of over Rs 13.42 crore approximately for the state.
For restaurants and pubs in Mumbai (8,000) it means a revenue of Rs 8 crore.
Given this colossal figure, Alva added, "It makes sense to institute the 5 am drink deadline all through the year. Don't forget, Mumbai is a tourist hotspot and is known for its night life.
People have money to spend and keeping bars and restaurants open till 5 am makes economic sense."
So then, if the drink deadline is indeed, if ever, extended to 5 am all through the year, the revenue for the state would be Rs 11,021 crore (excise revenue and VAT) approximately, while restaurants and pubs stand to make at least Rs 2,920 crore.
Now, the excise department's annual target for 2009-2010 alone is Rs 5,000 crore. If the 5 am deadline is instituted, the excise department alone, would stand to make at least Rs 9,000 crore per annum.
"We normally do achieve our targets, but given that we have a shortage of manpower, the excess revenue of Rs 4,000 crore would certainly help.
And which department does not want to up their income," asked a senior excise officer.
Raising a toast
Meanwhile, members of AHAR are raising a toast to Surendra S Surana, owner of Carnival bar and restaurant at Worli, who got the loudspeaker deadline extended to 5 am for New Year's Eve.
"We will go ahead with the 5 am deadline that has been given to our member, which applies to all the restaurant owners.
We will also appeal to the commissioner of police and to the home department to generalise the order," said Alva.
P G Parkar, the advocate representing Surana said, "All restaurants and pubs (holding the FL3 licence) can abide by this order as Surana is a member of AHAR."u00a0
But according to other legal opinion this rule is applicable to Surana only as Surana and not AHAR filed the writ petition.
But not everyone thinks that 5 am deadline will bring more revenue. "It's of no use as people are in no mood to party thanks to the drink driving agenda by the traffic police.
It's easy to get event passes anywhere, which was difficult earlier," said Shailesh B Agarwal, owner of On Toes.
2,500
Traffic cops stationed across u00a0the city today
Rs 13.7 Cr
Excise revenue per day with u00a0a 1.30 am deadline
Rs 24.66 Cr
Excise revenue per day with u00a0a 5 am deadline
Rs 3.08 Cr
VAT revenue per day with u00a0a 1.30 am deadline
Rs 5.54 Cr
VAT revenue per day with u00a0a 5 am deadline
Around The World |
London: Licensing laws were relaxed in 2005 allowing for 24 hour drinking at pubs and clubs in the city. |