Chapter V OFFENCES AND PENALTIES

Whoever manufactures, imports, exports, transports or removes any liquor, in contravention of any of the provisions of this Regulation or of any rule made, or notification or order issued, thereunder, or of any condition of licence or permit granted or issued thereunder, shall be punishable,

1. (a) where the liquor involved in the offence is less than such value, as may be prescribed, with imprisonment for a term which shall not be less than one year, but which may extend to five years, and with fine which shall not be less than fifty thousand rupees or five times of the value of liquor, whichever is higher;
2. (b) where the liquor involved in the offence exceeds such value, as may be prescribed, with imprisonment for a term which may extend to seven years, and with fine, which may extend to one lakh rupees or five times of the value of liquor, whichever is higher.

Whoever constructs or works in any manufactory or warehouse, in contravention of any of the provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, or of any condition of licence or permit granted or issued thereunder, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to fifty thousand rupees, or with both.

Whoever bottles any liquor for the purposes of sale, in contravention of any of the provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, or of any condition of licence or permit granted or issued thereunder, shall be punishable with imprisonment for a term which may extend to one year, and with fine which may extend to one lakh rupees or five times of the value of liquor, whichever is higher.

Whoever uses, keeps or possesses any materials, still, utensils, implements or apparatus whatsoever for the purposes of manufacturing any liquor, in contravention of any provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, or of any condition of licence or permit granted or issued thereunder, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to twenty thousand rupees, or with both.

Whoever possesses any material or film, either with or without Union territory logo or wrapper or any other thing in which liquor can be packed, or any apparatus or implement or machine for the purpose of packing any liquor, in contravention of any of the provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, or of any condition of licence or permit granted or issued thereunder, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to fifty thousand rupees, or with both.

Whoever sells, transports, possesses or buys any liquor beyond such quantity, as may be prescribed, in contravention of any of the provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, or of any condition of licence or permit granted or issued thereunder, shall be punishable with imprisonment for a term which may extend to three months, and with fine which may extend to one lakh rupees or five times of the value of liquor, whichever is higher.

If any offence referred to in sections 32, 33, 34, 35, 36 and 37 is committed by a person not holding valid licence or permit under this Regulation, he shall be liable to twice the fine provided for such offence.

Whoever renders or attempts to render fit for human consumption any spirit which has been denatured, or has in his possession any spirit in respect of which he knows or has reason to believe that any such attempt has been made, shall be punishable with imprisonment for a term which shall not be less than two years, but which may extend to three years, and with fine which may extend to two lakh rupees or five times of the value of liquor, whichever is higher. Explanation.-For the purposes of this section, denatured spirit means the spirit with an added denaturant to render it effectively and permanently unfit for human consumption.

Whoever mixes or permits to be mixed with any liquor sold or manufactured or possessed by him, any noxious drug or any foreign ingredient, likely to cause disability or grievous hurt or death to human being, shall be punished,

1. (a) if as a result of such an act, death is caused to any person, with imprisonment for a term which shall not be less than ten years, but which may extend to imprisonment for life and shall also be liable to fine, which may extend to ten lakh rupees; or
2. (b) if as a result of such an act, disability or grievous hurt is caused to any person, with imprisonment for a term which shall not be less than seven years but which may extend to ten years, and with fine which may extend to five lakh rupees; or
3. (c) if as a result of such an act, any other consequential injury is caused to any person, with imprisonment for a term which may extend to one year and shall also be liable to fine which may extend to two lakh fifty thousand rupees; or
4. (d) if as a result of such an act, no injury is caused to any person, with imprisonment which may extend to six months and with fine which may extend to one lakh rupees or five times the value of liquor, whichever is higher. Explanation.-For the purposes of this section, grievous hurt shall have the same meaning as assigned to it in section 116 of the Bharatiya Nyaya Sanhita, 2023.

1. (1) Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, the Court, when passing an order under this Regulation may, if it is satisfied that death or injury has been caused to any person due to consumption of liquor sold in any place, order the manufacturer or seller, whether or not he is convicted of an offence, to pay, by way of compensation, an amount not less than three lakh rupees to the legal representatives of each deceased, or two lakh rupees to the person to whom grievous injury has been caused, or twenty thousand rupees to the person for any other consequential injury: Provided that where such liquor is sold in a licensed shop, the liability to pay the compensation under this section shall be on the licensee.
2. (2) Any person aggrieved by an order under sub-section (1) may, within a period of thirty days from the date of order, prefer an appeal to the High Court: Provided that no appeal shall be filed by the accused unless the amount ordered to be paid under sub-section (1) is deposited by him in the Court: Provided further that the High Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

Whoever sells, or keeps, or exposes for sale, as foreign liquor which he knows or believes it to be Indian liquor, shall be punishable with imprisonment which may extend to six months, and with fine which may extend to one lakh rupees or five times the value of liquor, whichever is higher.

Whoever has in his possession, any liquor, knowing that it shall be liable to penalty for having unlawfully imported, transported or manufactured, or knowingly avoids payment of duty for possession of liquor, shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to one lakh rupees, or five times the value of liquor, whichever is higher.

1. (1) If a chemist, druggist, apothecary or keeper of a dispensary, allows any liquor which has not been bonafidely medicated for medicinal purposes to be consumed on his business premises by any person, he shall be punishable with fine which may extend to five thousand rupees.
2. (2) If any person consumes liquor on a business premises referred to in sub-section (1), he shall be punishable with fine which may extend to two thousand rupees.

Whoever consumes liquor in a public place, in contravention of the any of the provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, shall be punishable with fine which may extend to five thousand rupees.

Whoever consumes liquor in public place and creates nuisance, in contravention of the any of the provisions of this Regulation, or of any rule, notification or order made thereunder, shall be punishable with imprisonment for a term which may extend to three months, and with fine which may extend to ten thousand rupees.

Whoever permits drunkenness or allows assembly of anti-social elements, on the premises of liquor establishments in contravention of the any of the provisions of this Regulation, or of any rule made, or notification or order issued, thereunder, shall be punishable with imprisonment for a term which may extend to six months, and with fine which may extend to fifty thousand rupees.

Whoever prints, publishes or gives an advertisement in any media soliciting use of any liquor, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten lakh rupees, or with both: Provided that this section shall not apply to catalogue or price list or advertisement generally or specially approved by the Excise Officer for the purposes of display at the points of sale for consumer information and education.

Any person who unlawfully releases or abets escape of any person arrested under this Regulation, or abets the commission of offence under this Regulation, or engages himself in a criminal conspiracy for contravention of the any of the provisions of this Regulation, shall be punishable with imprisonment for a term which may extend to one year, and with fine which may extend to fifty thousand rupees.

If any licence holder or any person acting in his behalf, sells or delivers any liquor to any person apparently under the age of twenty-one years or employs any person under the age of eighteen years, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to fifty thousand rupees, or with both.

Notwithstanding anything contained in the Bharatiya Nyaya Sanhita, 2023, any person who assaults or threatens to assault or obstructs or attempts to obstruct any Excise Officer in the discharge of his official duties, shall be punishable with imprisonment for a term which may extend to two years, and with fine which may extend to one lakh rupees.

The holder of a licence or permit granted or issued under this Regulation, shall be liable for any offence committed by his employee or his agent, unless he proves that due and reasonable precautions were exercised by him to prevent commission of such offence.

1. (1) Where any liquor has been manufactured or sold or is possessed by any person on account of any other person and such other person knows, or has reason to believe, that such manufacture or sale was or that such possession is, on his account, such liquor shall, for the purposes of this Regulation, be deemed to have been manufactured, sold or to be in the possession of such other person.
2. (2) Nothing in sub-section (1) shall absolve any person who manufactures, sells or has possession of any liquor on account of another person, from liability to any punishment under this Regulation for unlawful manufacture, sale or possession of such liquor.

Whoever, being the holder of a licence or permit granted or issued under this Regulation, or being in the employment of such holder and acting on his behalf, fails to produce such licence or permit on demand by any Excise Officer or any other officer duly empowered to make such demand, shall be punishable with fine which may extend to fifty thousand rupees.

Whoever, being the holder of a licence or permit granted or issued under this Regulation, or being in the employment of such holder and acting on his behalf, wilfully does or omits to do anything in breach of any of the conditions of his licence or permit otherwise than provided in this Regulation, or fails to print the maximum retail price on the label or tampers with it, shall be punishable with imprisonment for a term which may extend to six months, and with fine which may extend to one lakh rupees.

Whoever, being the holder of a licence or permit granted or issued under this Regulation, or being in the employment of such holder and acting on his behalf, fails to submit returns, shall be punishable with fine which may extend to one lakh rupees, and ten thousand rupees per day for any subsequent delay.

1. (1) If any person fails to pay any duty or fee under this Regulation, he shall be punishable with imprisonment for a term which may extend to one year and also with fine which may extend to one lakh rupees.
2. (2) Without prejudice to sub-section (1), the person referred to therein shall also be liable to pay interest on delayed payment and damages at such rates as may be imposed.

Whoever, in any declaration or affidavit or periodic return made to an Excise Officer, makes a statement which is false or found to be false, after due verification or which he believes to be false or does not believe it to be true, touching any point material to the object for which the statement is made or used, shall be punishable with imprisonment for a term which may extend to one year, and with fine which may extend to fifty thousand rupees.

Whoever, being a licensee and having the control or use of any house, room, enclosure, space, animal or conveyance, knowingly permits it to be used for commission by any other person of an offence punishable under any of the provisions of this Regulation, shall be punishable in the same manner as if he had himself committed the said offence.

Whoever attempts to commit any offence punishable under this Regulation, shall be liable for half the punishment provided for such offence under this Regulation.

Any Excise Officer or other person, who with vexatious intention and without reasonable ground for suspicion,

1. (a) enters or searches or causes to be entered or searched any closed place under the guise of exercising any power conferred by this Regulation; or
2. (b) seizes the movable property of any person on the pretext of seizing or searching for any article liable to confiscation under this Regulation; or
3. (c) searches, detains or arrests any person; or
4. (d) exceeds his lawful powers under this Regulation, shall be punishable with fine which may extend to ten thousand rupees.

Any Excise Officer who, without lawful excuse, refuses to perform, or withdraws himself from the duties of his office, unless expressly allowed to do so in writing by the Excise Commissioner, or unless he has given to his superior notice in writing of his intention to do so for a period not less than two months, or who shall be guilty of cowardice, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to ten thousand rupees, or with both.

Whoever, does any act in contravention of any of the provisions of this Regulation, or any rule made, or notification or order issued, thereunder and punishment for such contravention has not been provided under this Regulation, shall be punishable with imprisonment for a term which may extend to six months, and with fine which may extend to ten thousand rupees or five times the value of the liquor, whichever is higher.

1. (1) In a prosecution under section 32, 33, 34, 35, 36 or section 37, it shall be presumed, until the contrary is proved, that the accused person has committed the offence punishable under that section in respect of any liquor, still, utensil, implement or apparatus, for the possession of which he is unable to account satisfactorily.
2. (2) Where any animal, vessel, cart or other vehicle is used in the commission of any offence under this Regulation, and is liable to confiscation, the owner thereof shall be deemed to be guilty of such offence and such owner shall be liable to be proceeded against and punished accordingly unless he satisfies the Court that he had exercised due care in the prevention of the commission of such an offence.

If any person, after having been previously convicted of an offence punishable under this Regulation, subsequently commits and is convicted for the same offence, he shall be liable to twice the punishment provided for the first conviction subject to the maximum punishment provided for such offence and with twice the fine amount provided under the first conviction, or with both.

Where at any time during the trial of any offence under this Regulation alleged to have been committed by any person, not being the manufacturer, distributor or dealer of any liquor, the Court is satisfied, on the evidence adduced before it, that such manufacturer, distributor or dealer is also concerned with that offence, then, the Court may, notwithstanding anything contained in sub-section (3) of section 358 of the Bharatiya Nagarik Suraksha Sanhita, 2023, proceed against him under the respective provisions of this Chapter.

1. (1) If the person committing an offence under this Regulation is a company, the company and every person who at the time the offence is committed was in-charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence, shall be deemed to be guilty of such offence, and shall be liable to be proceeded against and punished accordingly: Provided that where a company has different establishments or branch, the concerned Chief Executive and the person in-charge of such establishment, branch or unit, nominated by the company as responsible for the conduct of business, shall be liable for that offence in respect of such establishment, branch or unit: Provided further that nothing in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all duediligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Regulation has been committed by a company and it is proved that the offence has been committed with the consent orconnivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be liable to be proceeded againstand punished accordingly. Explanation.For the purposes of this section,
   • (a) company means any body corporate and includes a firm or other association of individuals; and
   • (b) director, in relation to a firm, means a partner in the firm.

1. (1) Theauthorised Excise Officer shall, after investigation of any offence committed under this Regulation, send his report to the Deputy Commissioner.
2. (2) The Deputy Commissioner shall, after scrutiny of the investigation report sent to him under sub-section (1), decide within such period as may be prescribed, and on the basis of the gravity of offence, that the matter be referred to
   • (a) a Court of ordinary jurisdiction in case of offences punishable with imprisonment for a term which may extend to three years; or
   • (b) a special Court in case of offences punishable with imprisonment for a term exceeding three years, where such Special Court is established, and in case no Special Court is established, such cases shall be tried by a Court of ordinary jurisdiction.
3. (3) The Deputy Commissioner shall communicate his decision to the concerned Excise Officer, who shall launch prosecution before a Court of ordinary jurisdiction or a Special Court, as the case may be.

1. (1) Any other contravention under this Regulationshall be adjudicated by an Adjudicating Officer.
2. (2) The Administrator shall, by notification, appoint an officer not below the rank of an Additional District Magistrate of the district where the alleged

contravention occurred, to be the Adjudicating Officer for adjudication in such

manner as may be prescribed.

1. (3) The Adjudicating Officer shall, after giving the person a reasonable opportunity for making representation in the matter, and if, on such inquiry, he is satisfied that the person has contravened theany of theprovisions of this Regulation or any rule made, or notification or order issued, thereunder, impose such penalty as he thinks fit in accordance with the provisions relating to that contravention.
2. (4) The Adjudicating Officer shall have the powers of a Civil Court and all the proceeding before him shall be deemed to be
   • (a) a judicial proceeding within the meaning of sections 229 and 267 of the Bharatiya Nyaya Sanhita, 2023;
   • (b) a Court for the purposes of sections 384 and 385 of the Bharatiya Nagarik Suraksha Sanhita, 2023.
3. (5) While adjudicating the quantum of penalty under this Chapter, the

Compounding of certain offences

1. (1) Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, the offences punishable under sections 44, 45, 54, 56 and

61 may either before or after the institution of any proceeding, be compoundable

under this Regulation.

1. (2) Any person who is reasonably suspected of having committed an offence specified under sub-section
2. (1) may apply to the District Excise Officer for compounding of the offence.
3. (3) On receipt of an application under sub-section (2), the District Excise Officer, having regard to the circumstances of the case, may at his discretion order for compounding of the offence on payment of such sum of money by way of compounding fee or compensation for the offence, in accordance with such guidelines as may be prescribed.
4. (4) On payment by the person such sum of money specified under sub-section (3), no proceeding shall be instituted or continued against such person in any Criminal Court: Provided that the sum of money fixed as compounding fee or compensation by the District Excise Officer under this section shall not be less than five times but not more than ten times the duty involved or the value of liquor, apparatus, vehicle and other material, whichever is higher: Provided further that where liquor, apparatus, vehicle or other material is

seized, the same shall not be released but shall be disposed of in such manner as

may be prescribed.

1. (5) Where the composition of any offence is made after the institution of any prosecution, such composition shall be brought by the District Excise Officer in writing, to the notice of the Court in which the prosecution is pending and on such notice of the composition of the offence being given, the person in relation to whom the offence is so compounded shall be discharged.

While adjudging the quantum of fine or penalty under this Chapter, the Court or the Adjudicating Officer, as the case may be, shall have due regard to the following, namely:

1. (a) the amount of gain or unfair advantage, wherever quantifiable, made as a result of the contravention;
2. (b) the amount of loss caused or likely to cause to the Government or any person as a result of the contravention;
3. (c) the repetitive nature of the contravention;
4. (d) whether the contravention is without his knowledge; and
5. (e) any other relevant factor.

Whenever an offence punishable under this Regulation has been committed, the following things shall be liable to confiscation, namely:

1. (a) any liquor, material, still, utensil, implement apparatus in respect of or by means of which such offence has been committed;
2. (b) any liquor unlawfully imported, transported, manufactured, sold or brought along with, or in addition to any liquor, liable to confiscation under clause (a);
3. (c) any receptacle, package, or covering in which anything liable to confiscation under clause (a) or clause (b) is found, and the other contents, if any, of such receptacle package or covering; and
4. (d) any animal, vehicle, vessel, or other conveyance used for carrying liquor.

1. (1) Notwithstanding anything contained in this Regulation or any other law for the time being in force, where anything liable for confiscation under section 72 is seized or detained under the provisions of this Regulation, the officer seizing or detaining such property shall, without any unreasonable delay, produce the said seized property before the Deputy Commissioner.
2. (2) On production of the property seized under sub-section (1), the Deputy Commissioner, if satisfied that an offence has been committed under this Regulation, may, whether or not a prosecution is instituted for the commission of such offence, order for confiscation of such property, or otherwise he may order for its return to the rightful owner.
3. (3) While making an order of confiscation under sub-section (2), the Deputy Commissioner may also order that such of the properties to which the order of confiscation relates, which, in his opinion, cannot be preserved or are not fit for human consumption, be destroyed.
4. (4) Whenever any confiscated article has to be destroyed under this section, it shall be destroyed in the presence of the Excise Officer ordering the confiscation or forfeiture, as the case may be, or in the presence of an Excise Officer not below the rank of an Inspector.
5. (5) Where the Deputy Commissioner, after passing an order of confiscation under sub-section (2), is of the opinion that it is expedient in the public interest so to do, he may order the confiscated property or any part thereof to be sold by public auction or dispose it of otherwise.
6. (6) The Deputy Commissioner shall submit a report of all particulars of confiscation to the Excise Commissioner within a period of one month of such confiscation.
7. (7) Any liquor, mahua flowers or molasses and any other property if confiscated in a case compounded under section 70 or in respect of which an offence has been committed and the offender is not known or cannot be found, shall be disposed of in such manner as may be prescribed.

1. (1) The order of any confiscation under section 73 shall not prevent imposition of any other punishment to which the person affected thereby is liable under this Regulation.
2. (2) Notwithstanding anything contained in any other law for the time being

in force, the non-production of confiscated property before the trial Court due to

disposal of such property, shall not affect the proceeding under this Regulation:

Confiscated articles to vest in Administrator

1. (1) Subject to the provisions of this Regulation, when any article, animal or thing is duly confiscated either by order of Court or otherwise, such article, animal or thing shall be made over to the Deputy Commissioner for disposal in such manner and on payment of such fees, as may be prescribed.
2. (2) When an order for confiscation of any property has been passed under section 73 and such order has become final in respect of the whole or any portion of such property, such property or portion thereof, as the case may be, shall vest in the Administrator, free from all encumbrances. ---