### Excise policy transition to cluster-based renewal subject to district-wide thresholds is constitutionally valid and non-arbitrary.

The petitioners, existing licensees of retail liquor shops in Rajasthan, challenged the constitutional validity of Clauses 2.2.6, 2.2.7, and 2.2.8 of the Rajasthan Excise & Temperance Policy 2025–2029.

The Policy introduced a "cluster" system (1–5 shops) and mandated that renewal of individual licenses in a district was conditional upon (i) 70% of eligible licensees in that district applying for renewal, and (ii) all shops within a specific cluster opting for renewal.

The petitioner’s renewal application was cancelled because one shop in her assigned cluster remained unrenewed, leading the Department to propose a cluster-wise auction.