In a significant legal proceeding before the Supreme Court on Wednesday, Senior Advocate Dinesh Dwivedi, representing the Uttar Pradesh government, emphasized the exclusive authority of states to legislate on the regulation of industrial alcohol.
Speaking before a nine-judge Constitution bench presided over by Chief Justice D Y Chandrachud, Dwivedi argued that historically, "liquor" falls squarely within the legislative domain of states, with no jurisdictional mandate for the Centre concerning industrial alcohol.
Highlighting that excise, liquor, and spirit have traditionally been under the purview of state jurisdiction, including industrial alcohol, Dwivedi contended that the absence of any directive from the Central government under Section 18G of the Industries (Development and Regulation) Act, 1951, emphasizes the unoccupied nature of the regulatory field.
He asserted that this absence eliminates any potential conflict or encroachment, thereby granting states unbridled and comprehensive authority to legislate on the regulation of industrial alcohol.
The Constitution bench, comprising Justices Hrishikesh Roy, Abhay S Oka, B V Nagarathna, J B Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma, and Augustine George Masih, is currently deliberating on the legal intricacies surrounding overlapping powers between the Centre and states concerning the production, manufacturing, supply, and regulation of industrial alcohol.
The ongoing hearing marks a crucial juncture in clarifying the delineation of powers between the Central and state governments in the realm of alcohol regulation, with potential ramifications for regulatory frameworks across the country.
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