Chapter IV Control, Regulation and Exemptions

The 1[State] Government may, by notification in the Official Gazette, direct that any preparation containing alcohol not exceeding a specified percentage by volume shall be exempt from any of the provisions of this Act or rules, regulations or orders made thereunder.

The 1[State Government] may-

1. (a) establish a distillery in which spirit may be manufactured in accordance with a licence issued under this Act on such conditions as the 2[State[ Government deems fit to impose;
2. (b) discontinue any distillery established;
3. (c) licence, on such conditions as the 3[State] Government deems fit to impose the construction and working of a distillery or brewery;

No 1[intoxicant], hemp, mhowra flowers or molasses shall be removed from any distillery, warehouse or other place of storage established or licensed under this Act, except under a pass and unless the duty, if any, imposed under the provisions of this Act, has been paid or a bond has been executed for the payment thereof.

1. (1) The 1[State] Government may, by general or special order, authorise a Collector or any other officer to grant passes for the import, export or transport, of any 2[intoxicant] or hemp.
2. (2) Such passes may be either general for definite periods of time and definite kinds of 3[intoxicant] or hemp or special for specified occasions and particular consignments only.
3. (3) Every such pass shall specify-
   • (a) the name of the person authorized to import, export or transport 4[intoxicant] or hemp;
   • (b) the period for which the pass is to be in force;
   • (c) the quantity and description of 5[intoxicant] or hemp for which it is granted; and
   • (d) the places from and to which 6[intoxicant[ or hemp are to be imported, exported or transported and in the case of places more than ten miles apart, the route by which they are to be conveyed.

1[Through transport.-The through transport-

1. (a) of any consignment of any intoxicant, hemp, denatured spirituous preparation, mhowra flowers or molasses by a railway administration or by any steamer, ferry, road transport or air service, or
2. (b) of any intoxicant, hemp, denatured spirituous preparation, mhowra flowers or molasses, otherwise than by way of consignment, shall be subject to such conditions as may be prescribed.]

[Licence for possession of denatured or rectified spirit and alcohol for industrial or medical purposes.] Deleted by Bom. 22 of 1960, s. 15]

1[Licences for bona fide medicinal or other purposes.-The State Government may by rules or by an order in writing, authorise an officer to grant licences to any person, or institution, whether under the management of Government or not, for the manufacture, sale, purchase, possession, consumption, or use of any intoxicant or hemp or any article containing an intoxicant or hemp for a bona fide medicinal, scientific, industrial or educational purposes : Provided that, where any intoxicant or hemp, or article containing such intoxicant or hemp, has been obtained by any person for a bona fide medicinal purpose, from any person or institution licensed to sell the same under this section, it shall not be necessary for such person to obtain a licence for the possession, purchase, consumption or use thereof : Provided further that, no licence shall be necessary for the possession of denatured spirit to the extent of such quantity as may be prescribed.]

1Licences for purchase, etc. of liquor for manufacture of 2[articles mentioned in section 24A].- The State Government may, by rules or an order in writing authorise an officer to grant licences for the purchase, possession or use of any liquor or alcohol for the manufacture of 3[any article mentioned in section 24A] on such conditions as may be prescribed.]

Licences for tapping for 1[neera].-The 2[State] Government may authorise an officer by rules or an order in writing to grant licences for 3[the tapping of, 4]and drawing juice from], any plam trees for the purpose of sale or consumption as neera or 5 * * * manufacture of gur or any other article which is not an intoxicant 6[and on a licence being granted to the person to whom the trees belong, or who is in possession of such trees, may permit them to be tapped or permit toddy to be drawn therefrom.]

1. (1) The 1[State] Government may, by rules or an order in writing, authorise an officer to grant a vendor’s licence 2[for the sale of foreign liquor.]

1. (1) The 1[State] Government may, by rules or an order in writing, authorise an officer to grant a vendorsqtss licence 2[for the sale of foreign liquor.]
2. (2) A vendorsqtss licence shall be granted on the following conditions :- (i) the stock of foreign liquor with the licensee (except what is permitted for the disposal in the shop) shall be kept by him at 3[godown [ approved by Government. 4* * * * * *
   • (iii) the licensee shall pay all rent, costs, charges and expenses incidental to warehousing and supervision; 5[(iv) the licensee may sell any part of the stock of foreign liquor to foreign liquor licensees or to chemists, canteens, messes and clubs, holding licences in the State, or to any person outside the State, subject to such conditions as the 6[Commissioner] may impose;
   • (v) the licensee shall be permitted to sell foreign liquor only to holders of permits or authorizations;]
   • (vi) the licensee shall be entitled to keep in his shop such quantity of liquor as may be required by him from time to time for retail sale;
   • (vii) the licensee shall keep accounts and shall dispose of 7[ foreign liquor] according to such instructions as may be given by the 8[Commissioner], or any officer authorized in this behalf by the 9[Commissioner ].

1. (1) The 1[State[ Government may, by rules or an order in writing, authorize an officer to grant licences to the managers of hotels to sell foreign liquor to the holders of permits granted under this Act : Provided that, the 2[State] Government is satisfied that such hotel has ordinarily a sufficient number of boarders eligible to hold permits.
2. (2) Such licences shall be issued on the following conditions :-
   • (i) liquor shall be sold 3* * * * * to the permit holders 4[residing or boarding] at the hotel,
   • (ii) consumption of liquor sold shall not be allowed in any of the rooms of the hotel to which any member of the public has access,
   • (iii) the holders of hotel licences shall pay the expenses of any officer of the excise establishment, if any, required for grant and control of permits on the premises 5[or for the supervision over the issue and consumption of foreign liquor in the hotel].

[Special import licences to hotels.] Deleted by Bom. 22 of 1960, s. 21.

[Dining car licences.] Deleted by Bom. 22 of 1960, s. 21.

38. Licences to shipping companies 1[and to Masters of ships[.-The 2[State] Government may, by rules or an order in writing, authorize an officer to grant licences to any shipping company for each ship 3[or to the Master of any ship] to sell foreign liquor 4[and to permit the use or consumption of foreign liquor on such ship on such conditions as may be prescribed].

39. Permission to use or consume foreign liquor on 1* * warships, troopships and in 2[messes and canteens of armed forces.].-The 3[State] Government may, on such conditions as may be specified 4[by a general or special order permit-

1. (i) the sale of foreign liquor to,
2. (ii) the purchase, use or consumption of such liquor by,-

1. (a) the members of the armed forces in messes and canteens 5[of the armed forces], and
2. (b) the crew of warships or troopships and the members of the armed forces thereon.]

1. (1) The 1[State] Government may, by rules or an order in writing authorize an officer to grant permits for the use or consumption of foreign liquor to person on the following conditions :-
   • (a) that such person is not a minor; 2* * * * * * * *
   • (c) (i) that such person was either born and brought up or domiciled in any country outside India where such liquor is being generally used or consumed; or
     • (ii) that such person is on the Register of Foreigners under the Registration of Foreigners Act, 1939 (XVI of 1939), and is not domiciled in 3[India] : Provided that, in the case of any person falling under sub-clause (i) or (ii)- (a1) such person has been residing and intends to reside in India temporarily and that such person has a fixed and settled purpose of making his sole and permanent home in any country outside India; and (b1) that such person has been ordinarily using or consuming such liquor 4* * * **** *
2. (3) Such permits shall be granted for such quantities as may be prescribed. 5(4) If any question arises whether the conditions imposed by clause (a) or (c) of sub-section (1) are satisfied or not in any case, the State Government shall decide the question and its decision shall be final. 6* * * * * * *

1[40A. Health permits.-(1) The State Government may by rules or orders in writing, authorize an officer to grant a health permit for the use or consumption of foreign liquor to any person who requires such liquor for the preservation or maintenance of his health : Provided that no such permit shall be granted to a minor.

1. (2) Such permit shall be granted for such quantity and shall be subject to such further conditions as may be prescribed.

1. (1) The State Government may by rules or orders in writing authorize an officer to grant emergency permits for the use or consumption of brandy, rum or champagne or any other kind of liquor to any person for his own use or consumption or to any head of a household for the use of his household for medicinal use on emergent occasions : Provided that the person to whom a permit is granted under this section may 1[subject to such conditions as may be prescribed allow the use or consumption of liquor in respect of which the permit has been granted to any other person who requires the use thereof for medicinal purpose on emergent occasions : Provided further that no permit shall be granted to more than one member of a household at any one time. 2* * * * * * *
2. (3) Such permits shall be granted for such quantities and shall be subject to such further conditions as may be prescribed.] 3* * * * * *

The 1[State] Government may grant special permits for the use or consumption of foreign liquor 2[to any person who is -

1. (a) a Sovereign or Head of a foreign State;
2. (b) an Ambassador, Diplomatic Envoy or Consul, Honorary Consul or Trade, Commerce or other representative of a foreign State;
3. (c) a member of the staff appointed by or serving under any person specified in clause (a) or (b) : Provided that such member is a national of a foreign State; 3* * * * * * * 4[(c1) a member of a foreign Government; (c2) a representative or officer of any international organization to which privileges and immunities are given from time to time by or under the United Nations (Privileges and Immunities) Act, 1947; and]
4. (d) the Consort of any person specified in clauses (a), (b), 5[(c), (c1) or (c2)] or any relation of such person dependent upon him.

[Permits to be non -transferable.] Deleted by Bom. 22 of 1960, s. 26.

1[43. (1) No holder of a permit granted under any of the provisions of this Act other than section 40B shall drink in a public place 2* * * (2)3* * * 4[(3) A person holding a permit under sections 40, 41, 46, 46A or 47 may allow the use or consumption of any part of the quantity of foreign liquor possessed by him under the permit, to any other person who holds a permit under any of those sections.

1. (4) No holder of a permit under sections 40, 41, 46, 46A or 47 shall serve any liquor at any ceremonial or other function or any assembly of persons where persons (not being members of his family or his employees) who do not hold any of the permits aforesaid, are present. ]

1. (1) The 1[State] Government may, by rules or an order in writing 2[grant or authorise an officer to grant] licence; to a club approved by the 3[State] Government in this behalf to sell foreign liquor 4[to its members holding permits.]
2. (2) Such licences shall be granted on the following conditions- 5* * * * * * * *
   • (b) that no liquor shall be served to the holder of any permit in any room of the club to which the public have access at the time when any person who does not hold such permit is present;
   • (c) that the club when authorised 6[in writing] by any member who is the holder of a permit may stock the permitted quantity of liquor on account of such member; 7* * * * * * * * 8* * * * * * * * 9* * * * * * *

1. (1) The 1[State] Government may, by rules or an order in writing, authorise an officer to grant any authorization to any person for the use of liquor for sacramental purposes : Provided that the officer so authorized is satisfied that the use of such liquor is required in accordance with the religious tenets of the community to which such person belongs. 2[(2) An authorization under this section shall be granted on the recommendation of such members of the community to which the person applying for the authorization belongs as may be approved by the State Government in that behalf.] 3* * * * * * * *
2. (4) If any dispute arises whether the use of liquor is required by any person for sacramental purpose, the person requiring such use may apply to the 4[Commissioner]. The 5[Commissioner ] after holding a summary inquiry 6* * * shall decide whether or not the liquor is required by the person for sacramental purposes.
3. (5) The decision of the 7"Commissioner" under sub-section (4) shall be final.

1[46.Visitor’s permit.- (1) The State Government may, by rules or an order in writing, authorise an officer to grant a visitor’s permit for the purchase, possession, use or consumption of foreign liquor to a person who-

1. (a) (i) is a citizen of a foreign country, or a citizen of India and resides in any part of India, where consumption of alcoholic liquor is not generally prohibited by law; or
   • (ii) is a citizen of a foreign country, or a citizen of India and resides in any part of India, where consumption of liquor is prohibited by law, but has been consuming such liquor under permit or other authorization; and
2. (b) visits the State for a period of not more than a week.

1. (2) Such permit shall be granted ordinarily for a period not exceeding one week at any one time; but may be extended from time to time for further periods not exceeding one week at a time, so however that the total period shall not exceed in the aggregate one month.]

1[46A. 2[Tourist's permit.].-(1) The State Government may, by rules or an order in writing, authorise an officer to grant 4[a tourists permit] to consume, to use and buy foreign liquor to a person who is a tourist.

1. (2) A tourists permit may be granted for the period of the tourists intended stay in the 3[State], but shall in no case be granted for a period exceeding one month.
2. (3) Such permits shall be available at such places as may be 4[fixed] by the 5[Commissioner] in this behalf.]

1. (1) Notwithstanding anything contained in sections 1[40A and 41] the 2[State] Government may, by rules or an order in writing, 3[authorize an officer to ] grant interim permits to persons applying for permits under any of the said provisions.
2. (2) Such interim permits shall not be granted for any period exceeding two months.

1[ 2[Permits] for consumption or use of intoxicating drugs 3[or opium]].- (1) The 4[State] Government may, by rules or an order in writing, authorise an officer to grant 5[permits] for the 6[consumption or use] of 7[intoxicating drugs] 8[or opium] in such quantities as may be prescribed.

1. (2) Such 9[permits] shall be granted on the certificate of the Medical Board.

1[48A. Permits to be non-transferable.-Permits granted under sections 40, 40A, 40B, 41, 46, 46A, 47 or 48 shall be non-transferable.]

1[49. Exclusive privilege of Government to import, etc. intoxicants, etc. and fees levied include rent or consideration for grant of such privilege to person concerned.- Notwithstanding anything contained in this Act, the State Government shall have the exclusive right or privilege of importing, exporting, transporting, manufacturing, bottling, selling, buying, possessing or using any intoxicant, hemp or toddy, and whenever under this Act or any rules or orders made thereunder any fees are levied and collected for any licence, permit, pass, authorisation or other permission given to any person for any such purpose, such fees shall be deemed to include the rent or consideration for the grant of such right or privilege to that person by or on behalf of the State Government.]

[Warehousing of opium] Deleted by Bom. 22 of 1960, s. 34.

[Rules for sale, etc. of warehoused intoxicant or hemp] Deleted by Bom. 22 of 1960, s. 34.

Notwithstanding anything in this Act, it shall be lawful for any officer authorized by the 1[State] Government in this behalf to grant any licences, passes or permits for import, export, transport, possession, sale, buying, cultivation, collection, manufacture, 2[bottling], consumption and use of any intoxicant, hemp, or mhowra flowers or molasses or for the tapping of any toddy producing tree or the drawing of toddy from such tree in cases other than those specifically provided under any of the provisions of this Act.

All licences, permits, passes or authorizations granted under this Act shall be in such form and shall, in addition to or in variation or substitution of any of the conditions provided by this Act, be subject to such conditions as may be prescribed and shall be granted on payment of the prescribed fee : Provided that every licence, permit, pass or authorization shall be granted only on the condition that the 1[person applying] undertakes, and in the opinion of the officer authorized to grant the licence, permit, pass or authorization is likely to abide by all the conditions of the licence, permit, pass or authorization and provisions of this Act. 2* * * * * * *

1[53A. Certain licensees required to keep measures, etc.- Every person who manufactures or sells any intoxicant or hemp under a licence granted under this Act, shall be bound-

1. (a) to equip himself with and keep such measures and weights and such instruments for testing the strength or quality of the intoxicant or hemp as the Collector may prescribe, and to keep the same in good condition, and
2. (b) on a requisition of any Prohibition Officer, duly empowered in this behalf, at any time to measure, weight or test any intoxicant or hemp in his possession or to have it measured, weighed or tested in such manner as the Prohibition Officer may require.]

1. (1) 1[The authority granting any licence, permit, pass or authorization under this Act may for reasons to be recorded in writing cancel or suspend it,]
   • (a) if any fee or duty payable by the holder thereof is not duly paid;
   • (b) if the purpose for which the licence, permit, pass or authorization was granted ceases to exist;
   • (c) in the event of any breach by the holder of such licence, permit, pass or authorization or by his servant or by any one acting with his express or implied permission on his behalf of any of the terms or conditions of such licence, permit, pass or authorization or of any licence, permit, pass or authorization previously held by the holder;
   • (d) if the holder thereof or any person in the employ of such holder or any person acting with his express or implied permission on his behalf is convicted of any offence under this Act or if the holder of the licence, permit, pass or authorization is convicted of any cognizable and non-bailable offence or 2[of any offence under the Dangerous Drugs Act, 1930 or under the Drugs Act, 1940 or under the Bombay Drugs (Control) Act, 1952] or under the Indian Merchandise Marks Act, 1889, or of any offence punishable under sections 482 to 489 (both inclusive) of the Indian Penal Code, or of any offence punishable under Article 8 of the Schedule to section 167 of the Sea Customs Act, 1878; 3[(e) if the licence, permit, pass or authorization has been obtained through wilful misrepresentation or fraud.]
2. (2) Where a licence, permit, pass or authorization held by any person is cancelled, under sub-section (1), the authority aforesaid may cancel any other licence, permit or pass or authorization granted or deemed to have been granted to such person under this Act. 4[(3) Notwithstanding anything contained in this section, the State Government may, for reasons to be recorded in writing, suspend or cancel any licence, permit, pass or authorization.]

No holder of a licence, permit, pass or authorization shall be entitled to any compensation for the cancellation or suspension of the licence, permit, pass or authorization under section 54 nor to a refund of any fee or deposit made in respect thereof.

1. (1) Whenever the authority granting a 1[licence, permit, pass or authorization] considers that it should be cancelled for any cause other than those specified in section 54, he may cancel 2[it] either-
   • (a) on the expiration of not less than fifteen days notice in writing of his intention to do so; or 3[(b) forthwith without notice, recording his reasons in writing for doing so.] 4[(2) Where a licence, permit, pass or authorization is cancelled under sub-section (1), a part of the fee for the licence, permit, pass or authorization proportionate to the unexpired portion of the term thereof and the deposit made by the holder thereof in respect of such licence, permit, pass or authorization shall be refunded to him after deducting any amount due from him to the State Government.]

Notwithstanding anything contained in any other section, when a licence is liable under that section to cancellation owing to default in the payment of any duty or fee payable by the holder thereof, the authority granting the licence may attach and take such licence under management, and if the profits received from such management after meeting all the expenses of such attachment and management are less than the amount of the arrears for which the licence was attached and the amount falling due on such licence during the remaining period of such licence the difference shall be recovered from the licensee as if it were a duty or fee leviable under any one of the provisions of this Act, and in the event of the said profits exceeding the amount so due under the licence, the licensee shall not be entitled to receive any of the said profits.

Notwithstanding anything contained in any law for the time being in force no right, title or interest in any licence, permit, pass or authorization granted under this Act shall be liable to be sold, transferred or attached in execution of any process of any civil or any other Court.

1[58A. Supervision over manufacture, etc.- The State Government may by general or special order direct that the manufacture, import, export, transport, storage, sale, purchase, use, collection or cultivation of any intoxicant, denatured spirituous preparation, hemp, mhowra flowers, or molasses shall be under the supervision of such Prohibition and Excise or Police staff as it may deem proper to appoint, and that the cost of such staff shall be paid to the State Government by the person manufacturing, importing, exporting, transporting, storing, selling, purchasing, using, collecting or cultivating the intoxicant, denatured spirituous preparation, hemp, mhowra flowers or molasses: Provided that, the State Government may exempt any class of persons or institutions from paying the whole or any part of the cost of such staff.]

1[Commissioner] entitled to require licence holder 2or owner to dispose of stocks.- (1) Notwithstanding the fact that the period during which any licence, permit, pass or authorization is to be in force has not expired, the 3[Commissioner] may direct the holder thereof to dispose of his stock of intoxicant, 4[denatured spirituous preparation,] or hemp or mhowra flowers before such date as may be specified in the order. 5[(1A) The 6[Commissioner] may also direct the owner of the stock of any intoxicant, 7[denatured spirituous preparation,] hemp or mhowra flowers who does not hold any licence, permit, pass or authorization for such stock to dispose of the said stock before such date as may be specified in the order, and the owner shall comply with such direction.]

1. (2) Any stock of intoxicant, 8[denatured spirituous preparation,] hemp or mhowra flowers left undisposed of after the date so specified shall, together with receptacles or packages in which it is contained, be liable to forfeiture to 9[the State Government] by the order of the 10[Commissioner ]. On the cancellation or the expiry of the period of any licence, permit, pass or authorization, the 11[Commissioner] may also direct that any stock of any intoxicant, 12[denatured spirituous preparation,] hemp or mhowra flowers remaining with the holder of the licence, permit, pass or authorization together with receptacles or packages thereof be forfeited to 13[the State Government.]
2. (3) If the articles which are forfeited under sub-section (2) are sold, the 14[Commissioner] may, if he thinks fit, order the whole or any portion of the sale proceed of such articles to be paid to the owner thereof. 15[(4) No direction or order under sub-section (1), (1A), (2) or (3) shall be made unless the person likely to be adversely affected by such direction or order is given reasonable opportunity of being heard, and the reasons for the direction given or order made are recorded in writing by the 16[Commissioner].