Supreme Court Verdict on Industrial Alcohol Regulation

On 23rd October, 2024, in an 8:1 majority verdict, the Supreme Court ruled that States retain the power to legislate on matters concerning industrial alcohol, despite the Centre's claims of full control under the Union List.

Key Points

States’ Legislative Authority Upheld: The Court affirmed that States cannot be stripped of their right to make laws on industrial alcohol, particularly when it may be diverted for intoxicating liquor production.
Centre’s Argument on Control: The Union government argued that industrial alcohol falls under its jurisdiction as an ‘industry’ under Entry 52 of the Union List, claiming complete control over the sector.
Concurrent List Provisions: The Centre's authority also extended to trade, production, and distribution under Entry 33(a) of the Concurrent List, suggesting State involvement is limited.
States’ Concern Over Public Safety: States such as Kerala, Maharashtra, Punjab, and Uttar Pradesh emphasized the risk of industrial alcohol being misused for making intoxicating liquor, stressing that State intervention is necessary to prevent potential tragedies.