The Supreme Court ruled that "intoxicating liquors" in the State List includes all types of alcohol, not just those consumed as beverages.
This includes industrial alcohol, rectified spirits, extra neutral alcohol, and denatured alcohol, expanding the scope beyond just alcoholic drinks.
The ruling strengthens the federal principle in India, reaffirming that states have significant power to regulate alcohol production, sale, and distribution
The court decided that the Industries (Development and Regulation) Act, 1951 does not grant the central government control over the entire alcohol industry.
Eight judges agreed on the ruling, while Justice B.V. Nagarathna dissented
She argued that "intoxicating liquor" should refer only to drinkable alcohol and emphasizing the central government's role in regulating industrial alcohol.
Nagarathna highlighted the significance of industrial alcohol for the economy, particularly in the chemicals sector.
This ruling follows another decision allowing states to tax mineral rights, further supporting state authority against central overreach.
Nagarathna cautioned against altering constitutional frameworks while interpreting them.
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