Key distillery denied licence as Madhya Pradesh raises stakes for liquor industry

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In one of the most significant actions against a major liquor manufacturer in recent years, the Madhya Pradesh government has rejected applications filed by Som Distilleries Group units seeking renewal of excise licences for 2026-27, citing allegations linked to illegal liquor transportation, forged permits, revenue loss to the state exchequer and violations of excise regulations.The decision, announced by the Excise Department Thursday, has been projected by the state government as a key example of Chief Minister Mohan Yadav’s “zero tolerance” policy towards illegal activities and regulatory violations.According to an order issued by the Excise Commissioner, licence renewal is not an automatic right and requires a detailed examination of an applicant’s conduct, compliance history, adherence to licence conditions and overall eligibility under the Madhya Pradesh Excise Act, 1915 and related rules.Also Read | Madhya Pradesh fast-tracks UCC – but there’s some oppositionOfficials said authorities reviewed court records, inquiry reports, documentary evidence and previous cases involving the group before arriving at the decision. The government stated that “matters linked to alleged illegal transportation of liquor, use of forged permits and loss of government revenue were among the factors considered during the review process”.The government also referred to directions issued by the high court, saying the court had made it clear that licence renewal applications must be decided independently on their merits and that no automatic right to renewal exists.The state government said the decision reflected its commitment to transparency, accountability and rule-based governance.“No individual, institution or establishment is above the law in Madhya Pradesh,” a government official said, adding that industries complying with regulations would continue to receive support while action would be taken against those violating legal provisions.Story continues below this adThe move is significant because Som Distilleries is among the most prominent liquor manufacturers operating in Madhya Pradesh and has a substantial presence in the state’s alcohol market.Som Distilleries had not publicly responded to the government’s decision.Why the actionHeadquartered in Bhopal, Som Distilleries and Breweries Ltd. is one of central India’s largest alcoholic beverage manufacturers and operates distillery, brewery and bottling facilities. The company is listed on Indian stock exchanges and markets several beer and Indian Made Foreign Liquor (IMFL) brands across multiple states.The government’s action against Som Distilleries follows a significant ruling of the Madhya Pradesh High Court earlier this year, which upheld the suspension of multiple excise licences held by the company and its group entities.Story continues below this adIn a March 23 judgment, Justice Vivek Agarwal reaffirmed the state’s wide regulatory powers over the liquor trade, observing that dealing in liquor is not a constitutionally protected right. “Firstly, liquor business is not a fundamental right and secondly, when the test of proportionality is applied, then on that touchstone also, decision of the authority being within the framework of the Excise Act and the Rules framed thereunder, cannot be faulted with,” the court said while dismissing the company’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 associated entities. The action stemmed from a show-cause notice issued after criminal convictions were secured in a case linked to the illegal transportation of liquor.According to court records, the matter traces back to a 2011 incident in which a truck carrying approximately 1,200 boxes of foreign liquor was intercepted on the Mhow-Neemuch road. Investigators found that the consignment was allegedly being transported using forged transit permits, resulting in a loss of excise revenue to the state. A trial court later convicted several individuals connected to the company, including supervisors, directors and transport personnel, under provisions of the Madhya Pradesh Excise Act and the Indian Penal Code relating to cheating, forgery and criminal conspiracy.Som Distilleries had argued that the state’s action was arbitrary and that the show-cause notice related only to licences that had expired in March 2024. The company contended that licences granted in subsequent years were fresh grants rather than renewals and therefore could not be affected by earlier proceedings. It also claimed the notice was vague and violated principles of natural justice.Anand Mohan J is an award-winning Senior Correspondent for The Indian Express, currently leading the bureau’s coverage of Madhya Pradesh. With a career spanning over eight years, he has established himself as a trusted voice at the intersection of law, internal security, and public policy. Based in Bhopal, Anand is widely recognized for his authoritative reporting on Maoist insurgency in Central India. In late 2025, he provided exclusive, ground-level coverage of the historic surrender of the final Maoist cadres in Madhya Pradesh, detailing the backchannel negotiations and the "vacuum of command" that led to the state being declared Maoist-free. Expertise and Reporting Beats Anand’s investigative work is characterized by a "Journalism of Courage" approach, holding institutions accountable through deep-dive analysis of several key sectors: National Security & Counter-Insurgency: He is a primary chronicler of the decline of Naxalism in the Central Indian corridor, documenting the tactical shifts of security forces and the rehabilitation of surrendered cadres. Judiciary & Legal Accountability: Drawing on over four years of experience covering Delhi’s trial courts and the Madhya Pradesh High Court, Anand deconstructs complex legal rulings. He has exposed critical institutional lapses, including custodial safety violations and the misuse of the National Security Act (NSA). Wildlife Conservation (Project Cheetah): Anand is a leading reporter on Project Cheetah at Kuno National Park. He has provided extensive coverage of the biological and administrative hurdles of rewilding Namibian and South African cheetahs, as well as high-profile cases of wildlife trafficking. Public Health & Social Safety: His recent investigative work has uncovered systemic negligence in public services, such as contaminated blood transfusions causing HIV infections in thalassemia patients and the human cost of the fertilizer crisis affecting rural farmers. Professional Background Tenure: Joined The Indian Express in 2017. Locations: Transitioned from the high-pressure Delhi City beat (covering courts, police, and labor issues) to his current role as a regional lead in Madhya Pradesh. Notable Investigations: * Exposed the "digital arrest" scams targeting entrepreneurs. Investigated the Bandhavgarh elephant deaths and the impact of kodo millet fungus on local wildlife. Documented the transition of power and welfare schemes (like Ladli Behna) in Madhya Pradesh governance. Digital & Professional Presence Author Profile: Anand Mohan J at Indian Express Twitter handle: @mohanreports ... Read More Tags:Madhya PradeshMohan Yadav