Tag Archives: alcohol regulation

Bihar liquor ban resulted in unauthorised liquor trade: Bihar High Court

The Patna High Court has observed that the Bihar Prohibition and Excise Act, 2016, which was passed with the objective of improving public health, instead, gave rise to unauthorised trade of liquor and other contraband items in the state. The single-judge Bench of Justice Purnendu Singh noted that the legislation found itself on the wrong side of the history for several reasons.

The Judge was scathing in his judgment on the state government officials who he said benefitted from the ban. The Judge mentioned Police and Excise officials, officers of the State Tax department and the Transport department who benefitted from the ban.

Quashing a demotion order issued against a police inspector – Mukesh Kumar Paswan – on the ground that he was negligent in implementing the prohibition law, the Bench noted that the police were working in tandem with liquor smugglers and the poor were bearing the brunt of the law.

The writ petition was filed by Mukesh Kumar Paswan, the station house officer (SHO) at Patna Bypass police station, who was suspended after Excise department officials found foreign-made liquor in his possession during a raid. Paswan was demoted in 2020 following a general directive issued by the state government.

The High Court said that a few cases were registered against the kingpins or syndicate operators involved in liquor smuggling, compared to the vast number of cases against the poor who consumed liquor or fell victim to hooch tragedies. The lives of the majority of the poor section of the state facing the wrath of the Act were daily wagers, who were only earning members of their family, it said.

Liquor-mafia goes scot-free

It further said the Investigating Officer in the case did not offer any documentary evidence to substantiate the allegations made by the prosecution against the accused SHO, adding that the liquor mafia also went scot-free due to want of evidence.

The single-judge Bench annulled the entire departmental proceedings initiated against the petitioner, stating that this form of punishment was predetermined, which reduced the entire departmental proceedings to a formality.

It maybe, mentioned that in April 2016, the Bihar government enacted the law, prohibiting the manufacture, trade, storage, transportation, sale, and consumption of liquor in the state. The law remained on paper and Bihar witnessed a rise in illegal transport of liquor. Worse, it saw several deaths due to consumption of illicit liquor.

“The draconian provisions have become handy for the police, who are in tandem with the smugglers. Innovative ideas to hoodwink law enforcing agencies have evolved to carry and deliver the contraband. Not only the police officials (and) excise officials, but also officers of the state tax department and the transport department love the liquor ban — for them it means big money,” the Single Bench said.

“I find it proper to record here that the Article 47 of the Constitution of India, while (sic) mandating the duty of the state to raise standards of living and to improve the public health at large and as such the state government enacted Bihar Prohibition and Excise Act, 2016 with the said objective, but for several reasons, it finds itself on the wrong side of the history,” it said.

Chandrababu Naidu

Andhra Pradesh’s New Excise Policy; Retail Back with Private Players

The Andhra Pradesh government led by N. Chandrababu Naidu on September 18 announced a new excise policy to come into effect from October 1, 2024, the highlights been retail sale by private players; availability of cheaper select brands starting from Rs. 99; setting up of premium liquor stores and expecting to generate revenue of Rs. 2,000 crore per year.

Reversing the decision of the previous YSR Congress Party (YSRCP) run government, the TDP government has claimed that there was a revenue loss of Rs. 18,860.51 crores from 2019 to 2024 due to a skewed policy. The AP government has fixed price of affordable liquor at Rs 99. The allocation of licenses will be done through an online lottery, and four license categories have been fixed with fees ranging from Rs 50 lakh-Rs 85 lakhs.

In a white paper, released earlier, the TDP said that the non-availability of Indian-made foreign liquor (IMFL) brands had resulted in an increase in sales of poor-quality brands and spurious substances. It may be mentioned that the YSRCP had promised prohibition in Andhra Pradesh in 2019, but only imposed restrictions on the liquor trade instead of complete prohibition.

Premium Liquor Stores To Get Nod

The new excise policy will be in force for two years. It will also allow for the setting up of premium liquor stores and alignment of liquor prices with Telangana and Karnataka. It also decided to reserve 10% retail outlets for toddy tappers and to open premium shops at 12 locations other than Tirupati.

The Minister for Information and Public Relations  K Parthasarathi said the NDA alliance promised to bring an excise policy that ensures the quality of liquor at affordable price. He alleged several irregularities took place in the previous government in sale of liquor at every stage.

“The cabinet decided to adopt a private retail system for sale of liquor as part of an attempt to increase management efficiency. Of the 3,736 retail outlets in the state, 10 per cent will be allotted to the toddy-tappers community.”

The new government expects to generate additional excise revenues following the implementation of the policy. In fact, Andhra Pradesh had seen a gradual growth year-on-year in excise revenue, up from Rs 17,473 crore in 2019-20, escalated to Rs 23,785 crore in 2022-23 fiscal, even as the YSRCP government was working on reduction in the consumption of alcohol.

Reversing Previous Government Notification

The previous government in a notification in November 2023 had avowed policy of reduction in the consumption of alcohol levels in the State. In order to realize the objective, the Government had taken several measures such as removal of belt shops, dispensing with permit rooms, which are meant for consumption of liquor in the vicinity of shops, removal of private players from the retailing by shop etc.

YSRCP Had Reduced Shops By About 33%

Further, the A.P. State Beverages Corporation Limited had been granted exclusive privilege of retailing of IMFL and Foreign Liquor by the shop from the appointed date i.e. 01.10.2019. Further, the Government had reduced the number of shops to 2934 i.e. by about 33%. Keeping in view the policy imperative and after careful examination of the proposals submitted by the Commissioner of Distilleries and Breweries & Managing Director, the A.P. State Beverages Corporation Limited decided that it will continue the retailing of IMFL & FL through the retail outlets.

The licence period of the Shops shall be one year from 01.10.2023 to 30.09.2024 with the Commissioner of Prohibition & Excise empowered to renew the existing retail outlets run by the APSBCL under Rule 8 of the A.P. Excise (Grant of licence of selling by shop and conditions of licence) Rules, 2019 on payment of annual licence fee.   The policy also said there will be no permission or renewal for shops on the road from Tirupathi Railway Station to Alipiri via RTC Bus Stand, Leelamahal circle, Nandi circle, Vishnu Nivasam, Srinivasam. Likewise, no Shop shall be permitted on the road from Leelamahal – Nandi circle – Alipiri – SVRR Hospital – SVIMS in Tirupathi Municipal Corporation area.

The APSBCL shall be permitted to establish walk-in shops (Elite Shops) in the State as per the requirement but without any change in the number of retail outlets permitted. The previous policy also mentioned that it would take up campaigns to educate the public on the evils of consumption of liquor and other intoxicants.