The Telangana High Court recently ruled that obtaining a license to operate a hotel or restaurant does not automatically grant the right to establish a smoking area or run hookah centers. In the case of Waheed Uddin Ahmed Ansari v. Prl Secy Home Dept and 2 Ors, the court directed that eateries wishing to operate hookah centers must obtain the necessary license from the local municipality and obtain permission from the police.
Justice CV Bhaskar Reddy emphasized that, according to the law, Hookah Centers are prohibited from serving tobacco to minors. Additionally, the court mandated the display of pictorial health warning labels at the entrance. The police were granted the authority to oversee and inspect Hookah Centers for compliance with rules and regulations.
The court clarified that police action could be taken for violations of the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade Commerce Supply and Distribution) Act. Justice Reddy specified that as long as the prescribed conditions and provisions of the Act are met, the police should not interfere with the business activities of petitioners running Hookah Centers.
The court dismissed the argument that the license obtained for running hotels or restaurants automatically includes permission to operate hookah centers. In response to a batch of petitions alleging police harassment and false cases despite compliance with the COTP Act, the court examined the Act's provisions. It found that a restaurant with a seating capacity of 30 persons or more is required to have a separate smoking zone.
The court also noted that Section 12 of the Act grants the police or authorized officers the power to search premises on suspicion of Act violations. Thus, the court concluded that police entry into restaurants to check for violations is not illegal.
Addressing the broader issue of restrictions on the supply and serving of tobacco products, including hookah, the court stated that such restrictions do not violate Article 19(1)(g) (right to practice any business) of the Constitution.
Specifically addressing the petitioners' case, the court emphasized that hotels and restaurants, being public places, are prohibited from allowing smoking of any tobacco product. However, a separate area can be designated for smoking, subject to rules and regulations issued by the Commissioner of Police.
Considering the provisions of the Hyderabad City Police Act, the court specified that permission from the relevant authority is necessary to establish hookah centers. Additionally, because charcoal is used for serving hookah, the court required restaurants to obtain a license from the Municipal Corporation. In conclusion, the court stated that Hookah Centers can be permitted, provided they adhere to the conditions and provisions of the COTP Act.
