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Which Laws Regulate the Liquor Consumption in India??


Laws that Regulate Liquor Consumption in India


In India, any establishment that serves alcohol must have a valid liquor license. Liquor consumption, manufacturing, and distribution are issues pertaining to the state list as per the seventh schedule of the Indian constitution. This is why each state has its own liquor laws. Even for registration of foreign liquor bar licenses, every government regulates alcohol sales to prevent minors from purchasing spirits, wine, beer, and liquor. For instance, the requirements for a liquor license varies in small towns where they often only approve a new license when the population grows.

According to the Licensing Act 2003, you need a license to sell alcohol and this includes giving away free alcohol as it is considered an incentive to purchase or that it is included in your pricing structure.

Before starting a liquor business, we have to know about the License or Government regulations, and legal things which are one of the most important factors before starting the liquor business in India.

Some of the key laws governing alcohol consumption in India are:

1. The Delhi Excise Act, 2009

The Delhi Excise Act, 2009 is the act that governs all matters relating to the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the NCT of Delhi. As per Sec 23 of the Act, no person below the age of 25 shall be served and/or delivered alcohol for consumption. The Delhi Excise Act also establishes the licensing authorities for obtaining a liquor license in the NCT of Delhi.

2. The Delhi Excise Rules 2010

Complementing the Delhi Excise Act, 2009, the Delhi Excise Rules 2010, lays down the detailed procedure for obtaining a liquor license in Delhi. The Act also lays down detailed rules regarding the import, export, possession transport, permits and passes in relation to alcohol and other intoxicants.

3. The Bombay Prohibition Act 1949

The Bombay Prohibition Act, 1949 is an Act that caters to the enforcement and promotion of alcohol prohibition in the state of Bombay. After the state of Bombay was divided into the states of Maharashtra and Gujarat in 1960, the Act was made to be applicable in the State of Gujarat.

Under The Bombay Prohibition Act, 1949, a permit is mandatory to purchase, possess, serve or consume liquor. The Act also empowers the police and other authorities to arrest a person for indulging in acts that are in contravention to the Bombay Prohibition Act with punishment ranging from three months to five years in prison. The Bombay Prohibition Act thus bans liquor consumption in the state of Gujarat.

4. The Goa Excise Duty Act and Rules, 1964

The Goa Excise Duty Act and Rules, 1964, is a piece of legislation that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Goa. The act consolidates all the functioning liquor laws prevailing in the state of Goa and defines key regulations such as legal drinking age, excise authorities, prohibitions, licensing rules, etc. Section 19 of The Goa Excise Duty Act and Rules act prohibits the sale of liquor to any person who is:

  • A person of unsound mind

  • A person below the age of 21

5. Tamil Nadu Liquor(License and Permit) Rules, 1981

The Tamil Nadu Liquor (License and Permit) Rules, 1981 is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Tamil Nadu. According to the general provisions of the act, no liquor can be imported in the state of Tamil Nadu, other than by persons holding a valid permit as per form FP3, FP5, FM1, and FL7. The act also restricts the export of liquor outside of Tamil Nadu except by persons holding a license as per form FL4.

6. Uttar Pradesh (United Provinces Excise Act, 1910)

The Uttar Pradesh (United Provinces Excise Act, 1910) is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Uttar Pradesh. According to the preamble of the act, it is drafted to promote, enforce and/or carry into effect the policy of prohibiting the import, export, transport, manufacture, sale, and possession of liquor and of intoxicating drugs in the United Provinces. The act prohibits the import and export of liquor in/from the state of Uttar Pradesh without prior approval of the State Government in the form of a permit/ license.

7. West Bengal (Bengal Excise Act 1909)

The West Bengal (Bengal Excise Act 1909) is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of West Bengal. The act gives exclusive powers to the State Government to declare what constitutes “country” and “foreign” liquor. Additionally, the act lays down licensing and permit requirements for dealing with liquor and other intoxicants.

8. Haryana (Punjab Excise Act, 1914)

The Haryana (Punjab Excise Act, 1914) is an act that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Haryana. The Act lays down provisions relating to the establishment of excise authorities, duties and fees, offenses and penalties relating to the import, export, manufacturing, and possession of liquor and other intoxicants. The act also sets the legal age of drinking as 25 years in the state of Haryana.

9. Karnataka Excise Act, 196T5

The Karnataka Excise Act, 1965 is a piece of legislation that regulates the manufacture, import, export, transport, possession, purchase, sale, etc., of the liquor and other intoxicants, in the state of Karnataka. The act lays down detailed provisions regarding the appointment of excise commissioners, licensing and permit regulations, duties, fees, offences, penalties, etc. The Karnataka Excise Act, 1965 sets the legal age of drinking in the state of Karnataka as 18 years.

In addition to the state-specific laws to regulate matters relating to liquor and other intoxicants, Article 47 of the Indian Constitution puts a duty upon the State to bring prohibition on the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health. This is a reason behind a strict ban on alcohol in as many as 5 Indian states.

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