Chennai: The Tamil Nadu state government has granted the right of retail vending of liquor to the Tamil Nadu State Marketing Corporation, a government agency, and the cooperatives. The government has promulgated an ordinance in this regard.

This decision has been taken to eliminate the cartels from distorting the retail trade, and to prevent the sale of contraband, non-duty paid and spurious liquor. The move is also aimed at preventing malpractices like violation of the maximum retail price indulged in by the private retailers, all of which ultimately affect the public and the state's revenues.

Private retailers have been indulging in various malpractices in the sale of liquor, a government press release said. The government has taken steps to prevent these malpractices and has announced a new system of selecting applicants based on merit for the excise year 2003-04 to run retail shops. The government has prescribed that only one licence be given to an applicant in an attempt to break cartels.