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The Supreme Court of India has handed down a landmark ruling, granting state governments the authority to regulate industrial alcohol, also known as denatured alcohol. This decision overturns a 1990 ruling that placed this power solely in the hands of the central government. The court classified industrial alcohol as "intoxicating liquor," recognizing its potential to cause harm when consumed. This decision stemmed from appeals by several states, including Kerala, Maharashtra, Punjab, and Uttar Pradesh, who argued that they needed the power to prevent the misuse of industrial alcohol for the production of illicit liquor, which has led to numerous deaths. The Supreme Court’s nine-judge bench delivered the verdict with an 8:1 majority, with Justice B.V. Nagarathna dissenting, arguing that industrial alcohol, being unfit for human consumption, should not be categorized as intoxicating liquor.
The court's decision emphasizes the distinction between industrial alcohol and usable alcohol. Industrial alcohol, often isopropyl alcohol or denatured ethanol, is primarily used in manufacturing, cleaning, and medical settings. Usable alcohol, primarily ethyl alcohol (ethanol), is intended for consumption in beverages like beer, wine, and spirits. The court's interpretation of "intoxicating liquor" under Entry 8 of List II (State List) of the Seventh Schedule encompasses industrial alcohol due to its harmful potential when ingested. The majority opinion clarified that "intoxicating" can include substances that are poisonous or harmful.
This decision has significant implications for state governments. They now have the authority to formulate laws tailored to their specific needs regarding the production, sale, and distribution of industrial alcohol. Moreover, they can now impose taxes on industrial alcohol, which will generate new revenue streams for state governments, particularly important for states facing budget deficits. This newfound power is expected to help states curb the misuse of industrial alcohol for the production of illicit liquor, which has led to numerous cases of alcohol poisoning and fatalities. The decision also recognizes the need for stricter regulation of industrial alcohol to protect public health and safety.
The court's decision highlights the complex relationship between the central government and state governments in India. While the central government retains certain powers related to alcohol regulation, the states now have greater autonomy in this domain. This decision marks a significant shift in power dynamics and could have far-reaching implications for the alcohol industry and public health in India. It remains to be seen how state governments will exercise their newly acquired power and the impact it will have on the production and consumption of industrial alcohol.
Source: What Is Industrial Alcohol? How It Differs from Regular Alcohol