Bars attached to liquor retail outlets across Tamil Nadu have downed their shutters after their licences expired on June 30, 2026, bringing operations to a halt until further orders from the State government.

The Tamil Nadu State Marketing Corporation Limited (Tasmac) has around 2,320 bars attached to its retail liquor outlets. According to K. Vignesh, Minister for Prohibition and Excise, discussions are underway on whether to extend the existing licences or invite fresh tenders. “The matter has to be placed before the board, which will take a decision,” he said.

A source in Tasmac said that a board meeting is expected to happen on Thursday (July 2, 2026). The source added that the closure of bars could lead to a loss of ₹400 crore per month. “We were told that fresh tenders will be floated, and the government is planning to introduce several changes in the new tender documents,” the source added.

Employees at liquor outlets have expressed concerns that the closure of bars could lead to people consuming alcohol outside the shops, creating a public nuisance, as many customers may not wish to take their liquor bottles home. “Adequate measures should be put in place to ensure that people do not create any nuisance outside the shops,” a salesman in the Chennai region said.

The licences of the operators running the bars were issued in January 2024 and were originally due to expire in January 2026. However, they were extended until June 2026 in view of the Tamil Nadu Assembly elections. Tasmac, a major revenue generator for the Tamil Nadu government, currently operates 4,048 retail liquor outlets across the state. The cash cow of the state government generates around ₹150 crore in liquor sales everyday through its retail network.