New Delhi, Oct 22: The Supreme Court is expected to announce its decision on October 23 regarding the contentious issue of overlapping powers between the Centre and the states concerning the production, manufacture, supply, and regulation of industrial alcohol. A nine-judge Constitution bench, led by Chief Justice of India D Y Chandrachud, will deliver the judgement.
The bench had reserved its verdict on April 18 after hearing arguments from various legal representatives, including Attorney General R Venkataramani and Solicitor General Tushar Mehta. Senior advocates Dinesh Dwivedi and Arvind P Datar also presented the case on behalf of the Uttar Pradesh government, alongside lawyers representing other states.
It is important to note that industrial alcohol is not intended for human consumption. The constitutional framework grants states authority over “intoxicating liquors” under Entry 8 of the State List in the 7th Schedule. However, Entries 52 and 33 in the Union List and Concurrent List, respectively, empower the Centre to legislate on industries deemed “expedient in public interest” by Parliament.
While both Parliament and state legislatures can enact laws on matters listed in the Concurrent List, central laws hold primacy over state laws when conflicts arise. The nine-judge bench is deliberating on a collection of petitions in response to a ruling made by a seven-judge bench that previously determined the Centre’s regulatory authority over industrial alcohol production.
In a landmark decision from 1997, the seven-judge bench asserted that the Centre possesses regulatory power over the production of industrial alcohol, prompting the referral of the case to the nine-judge bench in 2010. The earlier ruling highlighted that, under the Industries (Development and Regulation) Act of 1951, the Centre had demonstrated a clear intent to dominate legislative control over this subject, thereby suggesting that Entry 33 could not grant power to state governments.
