Gujarat Model: Unequal ‘licence-permit raj’ for liquor

On August 23, a Gujarat High Court order created ripples after it rejected the state government's objection to hearing a set of petitions challenging the constitutional validity of liquor prohibition law. The court cleared the way for judicial scrutiny of the archaic law known as the Bombay Prohibition Act, 1949, which makes Gujarat a dry state.

The state government had opposed the petitions and argued that the court should not entertain them at the threshold itself as their contentions were not maintainable. The government argued that back in 1951, the Supreme Court had already dealt with the same issue and hence the High Court cannot intervene. It was also argued that the appropriate forum would be the apex court itself. The court rejected the argument while noting that the grounds of challenge to the law back in 1951 were different.

One of the grounds of the present challenge to the law is that prohibiting a person from drinking alcohol within the four walls of one’s house amounts to a breach of privacy. The petitions have also pointed out how the state government has created a "class" of permit-holders, including tourists, who can sell, buy and consume liquor and a “class” that cannot.

The division bench noted, citing the apex court's judgement in the K S Puttaswamy vs Union Of India case in which the "right to privacy” of the citizen was recognised as a fundamental right. The order stated, "the petitioners have assailed some of the provisions of the 1949 Act on the ground that they violate the right to privacy. The same has never been tested before in the context of personal food preferences weaved within the right to privacy."

Gujarat is a ‘dry state’ that has 66 government-authorised liquor shops, and nearly 58,000 residents who have special permissions called ‘health permits’ that allow them to buy and consume liquor from these outlets. Visitors from other corners of the country and foreigners can also buy alcohol from these shops. Additionally, if you are hosting a conference for business purposes, you can also get permission to entertain the guests with alcohol with the help of a special provision called 'group permit', which allows buying and consuming liquor in the state in groups. Then, there are the Special Economic Zones (SEZ), which are exempted from the liquor prohibition law.

These are some of the tiny dots on the map of ‘dry’ Gujarat where, over the last couple of decades of slow relaxation, liquor has been made available to attract tourists and investors. Yet, at the same time, the government has taken a paradoxical turn by making the liquor prohibition law more stringent for the locals. A rough estimate shows that liquor prohibition violation cases contribute to nearly 15% of the total backlog of cases pending in the courts.

While the impact of the liquor law is a matter of debate, the law has hardly checked liquor smuggling, which continues to be rampant through the borders of neighbouring states such as Rajasthan, Madhya Pradesh and Maharashtra. In March this year, the state government informed the Assembly that between April 1, 2019, and December 31, 2020, police seized liquor worth over Rs 215 crore. The amount of alcohol smuggled into the state, which goes undetected, is estimated to be many times higher. The figure also revealed that police are looking for 4,545 accused in the prohibition cases.

"The figure of seizure of liquor on government records is just a drop in the ocean. The amount of undetected liquor flooding the state is humongous. I can say with my experience that out of 100 truckloads of liquor smuggled into the state, barely one or two get caught. Hundreds of trucks arrive every day, loaded with liquor. I never understood the logic behind this law. It is not working. We are dealing with cases of drunk driving, public commotion, robbery, and murders, which are occurring under the influence of alcohol, like in any other state," said a DGP rank police officer who retired recently, on condition of anonymity. In fact, just on Tuesday, a drunk man created a ruckus in Surat in full public view, leading to a major traffic jam.

The retired officer said that there are numerous cases revealing the involvement of cops and politicians in the organised syndicate behind the smuggling. "It is impossible to break that syndicate. No one can stop liquor smuggling," he said. Besides being part of the organised smuggling racket, there are many cases of policemen doubling up as bootleggers. In one case reported in Mehsana district last year, eight policemen were suspended for selling seized liquor out of a police station. They had dumped a few consignments of liquor in the Narmada canal for fear of getting busted.

"We started giving permits to a few people after receiving various representations from large hoteliers who were demanding liquor permission for business in the state and to attract tourists. So, we granted permission to buy liquor and consume within the four walls and not in public. But this was a small concession the government extended with various conditions," said Jay Narayan Vyas, a senior BJP leader, who was also the tourism minister in former chief minister Narendra Modi’s government.

However, he added, "Gujarat has benefited immensely from the prohibition law. There are certain ethos and beliefs behind the law which may not sound logical, but it has been able to keep the state peaceful and safe. It is an open secret that liquor is available in the state, but the law works as a deterrent for people who drink and create a nuisance."

The hearing on the petitions challenging the law is set to start in the High Court on October 12.