In a landmark ruling on October 23, 2024, the Supreme Court confirmed that states have the right to create laws regulating industrial alcohol, despite the Union government’s claims to control it. The decision was passed by an 8:1 majority, with Justice Nagarathna offering the only dissenting opinion.
The case focused on a power struggle between the central government and several states, including Kerala, Maharashtra, Punjab, and Uttar Pradesh. The Union argued that industrial alcohol falls under its jurisdiction as an industry, as outlined in the Union List (Entry 52) of the Constitution. It claimed control over every aspect of industrial alcohol, including its production, distribution, and trade.
However, the states raised concerns about the misuse of industrial alcohol for creating intoxicating liquor. They argued that state governments must have a say in regulating industrial alcohol to prevent such misuse and ensure public safety. The states asserted that they could not remain passive and needed to act before any harm occurred.
Kerala Government Plans Strict Action Against Bars Serving Alcohol to People Below 23
Odisha Bans New Liquor Shops for Three Years, CM Mohan Charan Majhi Announces Zero-Tolerance Policy on DrugsUltimately, the Supreme Court ruled in favor of the states, preserving their power to legislate on industrial alcohol.

