SC expands states' power to regulate industrial alcohol, expands definition of 'intoxicating liquor'

States have gained significant regulatory power over industrial alcohol following an 8:1 Supreme Court ruling issued today, October 23. The landmark decision broadly interprets "intoxicating liquor" under the Constitution to include industrial alcohol and denatured spirits.

Chief Justice DY Chandrachud, writing for the majority, emphasised that "intoxicating liquor" extends beyond beverages fit for human consumption. The ruling establishes that any alcoholic substances which could potentially be consumed, even if intended for industrial use, fall under state jurisdiction.

The judgment resolves a 17-year legal debate over regulatory authority between state and central governments. At its core was whether the Industries Development and Regulation Act of 1951 gave exclusive control of industrial alcohol to the central government.

The majority opinion cited public health concerns as a key factor, noting that states must be able to regulate all stages of alcohol production and distribution to protect citizens. The Court determined that "intoxicating" can also mean "poisonous," broadening state oversight to include industrial preparations.

Justice Chandrachud was joined by seven other justices in the majority opinion. The lone dissenting voice came from a nine-judge Constitution bench that included Justices Roy, Oka, Nagarathna, Pardiwala, Misra, Bhuyan, Sharma, and Masih.

Several states, including Uttar Pradesh, West Bengal, Maharashtra, and Kerala, had argued for broader regulatory powers over industrial alcohol. The central government opposed this interpretation, contending that industrial policy should remain under federal control.

The verdict effectively overturned aspects of previous Supreme Court decisions that had limited state authority over industrial alcohol.