What do you understand by Test of Reasonable Classification? Explain using Kerala liquor policy judgement as a case study.

The Test of Reasonable Classification is decisive in assessing the constitutionality of laws under Article 14 of the Constitution of India, which guarantees equality before the law. This test ensures that laws do not discriminate arbitrarily but instead classify individuals or entities based on intelligible differentia and rational nexus to the intended objective. In the context of Kerala’s liquor policy, the Supreme Court’s recent judgement provides insights. 1. Classification Criteria – Kerala’s liquor policy differentiates between hotels based on luxury offerings, specifically favouring five-star establishments. This classification raises questions about its rationality and whether it constitutes an intelligible differentia. Critics argue that the distinction fails to account for the diverse socio-economic contexts of consumers and merely serves the interests of affluent businesses. 2. Tourism Promotion Argument – The state government justifies its policy by asserting that promoting five-star hotels enhances tourism. However, this rationale appears questionable, especially considering that a substantial portion of alcohol consumption remains unrecorded. The policy risks alienating smaller establishments and local businesses, which may contribute equally to tourism. 3. Judicial Acceptance – The Supreme Court’s acceptance of the government’s argument reflects a broader tendency to endorse classifications that may not withstand rigorous scrutiny. This raises concerns about the judiciary’s role in ensuring that laws adhere to the principles of equality and non-discrimination. 4. Broader Implications – The implications of this judgement extend beyond Kerala, as it sets a precedent for how state policies may be crafted and challenged. A well-balanced approach to classification is essential to ensure that the laws serve the public interest without perpetuating inequality. Thus, while the Test of Reasonable Classification aims to encourage fairness, the Kerala liquor policy exemplifies the complexities involved in its application, necessitating a critical examination of state laws in light of constitutional principles.