The State Taxes and Excise Department (STED) uncovered a major illegal operation at the officially closed KM Distillery in Parwanoo. During a surprise inspection on Monday, officials seized a huge quantity of counterfeit liquor packaging materials, including:
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40,000 fake “track and trace” stickers,
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48,000 holograms meant for liquor bottles to be sold in Haryana (linked to Frost Falcon Distillers, Sonepat), and
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700 labels of “Santara” brand country liquor.
The raid was led by Additional Commissioner (Enforcement) Ujjwal Singh Rana and involved a team of nine officials. They also found that 9,000 bulk litres of Extra Neutral Alcohol (ENA) were missing from the premises — enough to make liquor worth several lakhs of rupees. This indicates possible unauthorized liquor production.
Shockingly, 4–5 people were found working inside the distillery, even though it has been officially shut and has no valid license for liquor manufacturing in Himachal or for export.
Authorities suspect liquor was being manufactured and transported illegally. Footage from the CCTV system confirmed unauthorized liquor movement, and officials have seized the digital video recorder for further investigation.
The distillery has now been sealed, and a police complaint is being filed. Officials from STED Haryana have been informed and are joining the investigation.
This distillery has a history of illegal activity. In April 2021, Parwanoo police had caught a truck carrying 700 boxes of illicit country liquor from this unit, destined for Solan and Shimla. Following that, a probe was conducted, penalties were imposed, and the unit remained closed for some time. Its license has not been renewed since April 2025.
Now, with STED officials tightening checks at border distilleries, this bust could be the start of more such crackdowns.