Counterfeit Liquor : India Perspective

COVID19 pandemic has opened up a Pandora's Box of Counterfeit Liquor in India. In 2019, when our entire population was confined inside homes during 65 days of complete lock down ( in four phases ), there was an acute shortage of Sanitizer for medicinal uses, FMCG & medicine companies were having a limited stock of it. Considering the urgency and demand Vs supply issues, both central government and state governments permitted almost all distilleries and alcohol bottling plants across India to manufacture Sanitizer with the raw material they already had in their stock.

?With the increase in the demand of Sanitizer due to prolonged COVID19 situation and ?related medical emergencies the governments even permitted for fresh distillation of Ethanol to be used in making Sanitizer. Also there were several news of uses of Methanol?in making sub standard and dangerous Sanitizer at that time by some opportunists and crime minded greedy persons.

News about inter - state smuggling of liquor in the same transport vehicle carrying Sanitizer to various destinations were also in the limelight during those days. Complete closure of liquor retail shops & bars over two months provided a king sized opportunities to bootleggers and smugglers to create a world of Counterfeit liquor in India reaching out to Home - Premises, unchecked. How can we forget those long queues in front of alcohol retail shops when Delhi government had permitted the opening.

By the time the first & the second COVID19 waves were over & normalcy was reinstated, the Counterfeit liquor business had increased by many folds in India. Assumably the bootleggers and smugglers have elevated themselves in the manufacturing of Counterfeit liquors, in addition of their forte. ???

Various authenticated reports on the status of Counterfeit liquor in India are available in public domain. Some responsible agencies like WHO , ASPA , Centre for addiction & mental health along with couple of other like FICCI indicates that the role of Counterfeit liquor in India was around 17% of the total alcohol consumption before the pandemic period, it has now alarmingly increased to 38% post - pandemic. According to FICCI's study the market size of Counterfeit liquor value wise was INR 23,466 Crores in the year 2019 -20 which is doubled at present. One can easily understand that how big is Counterfeit liquor spread across India. Globally the menace of Counterfeit liquor is big, it is increasing day by day despite international efforts to curb this inhuman and unlawful business.

According to Euromonitor, up to 26% of alcohol consumption worldwide is of Counterfeit / Illicit liquor amounting to a value of >$9. 00 Billion every year.

INDIA PERSPECTIVE ??

We have 28 states and 8 Union territories in India. With the blessings bestowed by our constitution, we have ( almost ) 28 + 8 = 36 different Excise & Prohibition Act , Laws & Rules spread over our country. Most of these acts, laws & rules are in existence since British India period. When our country became independent, we chose to separate alcohol economics from the purview of the federal government. Article -47 , Seventh Schedule , State List - II , the Directive Principals of the States says " Intoxicant liquors, that is to say, the production, manufacturing, possession, transportation, purchase & sale of intoxication liquors", shall be the prerogative of the state government. Having absolute control and authority over alcohol business, all 36 Excise & Prohibition (& Taxation) regulatory have their own laws to deal with Illicit & Counterfeit liquor within their respective states / UT.

I have interacted with so many regulatory officials in the last few years on this subject. To my surprise a couple of state excise registers different types of alcohol crimes in the same sections , be it bootlegging , smuggling or Illicit liquor manufacturing. For them a relatively small crime of Bootlegging is equal to making illicit liquor which plays social havoc causing so many deaths simultaneously. Resulting this the offenders and alcohol criminals get bails and again indulge into alcohol crimes. This is serious.

In my over 30+ years of existence in Indian Beverages Alcohol Industry , I have hardly seen any serious conviction in alcohol related crime which may have proved / established as a deterrent example of severe punishment.

An estimate says that ?more than 6000+ people have lost their lives in the hands of poisonous and illicit liquor between 2016 to 2022 in India. In August,2020 , over 125 people have died in Punjab consuming illicit liquor arguably made from METHANOL . Yet there is no conviction so far in this case, infect the accused has managed to get bail in April, 2023. Hon'ble Supreme Court of India has come heavily on this and has directed Punjab government to ensure preventive steps to stop any such liquor tragedies in future. Hon'ble Supreme Court has further instructed to the Punjab government to fix the responsibility of the police officer of the area wherever any such liquor tragedy occurs in future.

While I am writing this article on the status of Counterfeit liquor in India, at the same time I am also counting the death toll in Tamilnadu in the recent ( 15 days back ) liquor tragedy which is again reported due to METHANOL consumption. ?

Counterfeit liquor has many faces, Illicit, Methanol made poisonous and look alike brands. While reputed liquor companies are trying hard and their best to check the Counterfeit liquor, yet they have their limited resources and scope of checking. Therefore it is called upon the state excise & police departments to come heavily on this. The onus is on the state government machinery because they have elaborate law & order infrastructure.

In my opinion, besides amending the Food adulteration , FSSAI and state laws , acts & rules towards more stringent and serious in nature, the central government should also bring out specific criminal laws under IPC/CRPC to deal with only alcohol related crimes. The moment any alcohol crime is registered in any state or UT , there must be registration of crime under serious sections of Indian Panel Code. These federal laws against alcohol related crimes should be very serious in nature having no provision of bail for the criminals. These cases should be trailed in special courts within a given timeline. Also the accountability of investigating officer and their seniors must be fixed for their incompetency and inability to investigate and produce appropriate / credible evidence to make such cases watertight. ?

India is ranking at the third position in worldwide alcoholic beverages business, it is very important for our country to have a dedicated force and mechanism on the check of Counterfeit liquor which will reinstate global confidence in our country's ability to maintain law & order in this sector.

Your views, feedback & suggestions are heartily welcome .

Gopal Joshi,

Thought Leader , Strategist & Consultant,

Beverages Alcohol Industry.

[email protected]?