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Supreme Court Grants States Power to Regulate Industrial Alcohol

In a landmark 8:1 decision, the Supreme Court overturned a 1990 ruling, affirming states' rights over industrial alcohol regulation.

  • The Supreme Court's nine-judge bench ruled that states can regulate the production and distribution of industrial alcohol.
  • The decision overturns a 1990 judgment that granted regulatory control to the Centre, resolving a long-standing jurisdictional conflict.
  • Chief Justice DY Chandrachud led the majority opinion, with Justice BV Nagarathna dissenting, supporting central control.
  • The ruling clarifies that 'intoxicating liquor' under the State List includes industrial alcohol, not just beverages for human consumption.
  • This is the second recent Supreme Court decision enhancing states' taxing powers, following a similar ruling on mines and minerals.
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