Key distillery denied licence as Madhya Pradesh raises stakes for liquor business | India Information
4 min learnBhopalUp to date: Jun 19, 2026 04:58 AM IST
In one of the important actions towards a serious liquor producer in recent times, the Madhya Pradesh authorities has rejected functions filed by Som Distilleries Group models looking for renewal of excise licences for 2026-27, citing allegations linked to unlawful liquor transportation, solid permits, income loss to the state exchequer and violations of excise laws.
The choice, introduced by the Excise Division Thursday, has been projected by the state authorities as a key instance of Chief Minister Mohan Yadav’s “zero tolerance” coverage in the direction of unlawful actions and regulatory violations.
Based on an order issued by the Excise Commissioner, licence renewal is just not an computerized proper and requires an in depth examination of an applicant’s conduct, compliance historical past, adherence to licence circumstances and general eligibility below the Madhya Pradesh Excise Act, 1915 and associated guidelines.
Officers mentioned authorities reviewed courtroom information, inquiry experiences, documentary proof and former circumstances involving the group earlier than arriving on the choice. The federal government acknowledged that “issues linked to alleged unlawful transportation of liquor, use of solid permits and lack of authorities income have been among the many components thought-about in the course of the overview course of”.
The federal government additionally referred to instructions issued by the excessive courtroom, saying the courtroom had made it clear that licence renewal functions should be determined independently on their deserves and that no computerized proper to renewal exists.
The state authorities mentioned the choice mirrored its dedication to transparency, accountability and rule-based governance.
“No particular person, establishment or institution is above the legislation in Madhya Pradesh,” a authorities official mentioned, including that industries complying with laws would proceed to obtain help whereas motion could be taken towards these violating authorized provisions.
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The transfer is critical as a result of Som Distilleries is among the many most outstanding liquor producers working in Madhya Pradesh and has a considerable presence within the state’s alcohol market.
Som Distilleries had not publicly responded to the federal government’s choice.
Why the motion
Headquartered in BhopalSom Distilleries and Breweries Ltd. is considered one of central India’s largest alcoholic beverage producers and operates distillery, brewery and bottling services. The corporate is listed on Indian inventory exchanges and markets a number of beer and Indian Made Overseas Liquor (IMFL) manufacturers throughout a number of states.
The federal government’s motion towards Som Distilleries follows a big ruling of the Madhya Pradesh Excessive Court docket earlier this yr, which upheld the suspension of a number of excise licences held by the corporate and its group entities.
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In a March 23 judgment, Justice Vivek Agarwal reaffirmed the state’s huge regulatory powers over the liquor commerce, observing that dealing in liquor is just not a constitutionally protected proper. “Firstly, liquor enterprise is just not a elementary proper and secondly, when the take a look at of proportionality is utilized, then on that touchstone additionally, choice of the authority being throughout the framework of the Excise Act and the Guidelines framed thereunder, can’t be faulted with,” the courtroom mentioned whereas dismissing the corporate’s petition.
The case arose from an order issued by the Excise Commissioner on February 4, 2025, suspending eight licences held by Som Distilleries and related entities. The motion stemmed from a show-cause discover issued after prison convictions have been secured in a case linked to the unlawful transportation of liquor.
Based on courtroom information, the matter traces again to a 2011 incident by which a truck carrying roughly 1,200 packing containers of overseas liquor was intercepted on the Mhow-Neemuch street. Investigators discovered that the consignment was allegedly being transported utilizing solid transit permits, leading to a lack of excise income to the state. A trial courtroom later convicted a number of people related to the corporate, together with supervisors, administrators and transport personnel, below provisions of the Madhya Pradesh Excise Act and the Indian Penal Code referring to dishonest, forgery and prison conspiracy.
Som Distilleries had argued that the state’s motion was arbitrary and that the show-cause discover associated solely to licences that had expired in March 2024. The corporate contended that licences granted in subsequent years have been recent grants moderately than renewals and due to this fact couldn’t be affected by earlier proceedings. It additionally claimed the discover was obscure and violated ideas of pure justice.
