Context

For years, the states and the Union have been pitted on who has the legislative competence over each type of alcohol. However, in a latest update, the Supreme Court has ruled that the States' power to legislate to regulate industrial alcohol is untrammeled and complete.

Overlapping jurisdictions under various lists

• Entry 52of the Union List empowers the central government to regulate industries that Parliament finds to be of “public interest.”
• Parliament—acting in accordance with the Union List—through Section 18-G of the Industries (Development and Regulation) Act, 1951(Industries Act), is entrusted with the power to regulate specific products related to scheduled industries to the Union government.
  • This was done to ensure that these products were being distributed fairly and sold at reasonable prices. 
• Under Entry 8of the State List, a state is empowered to make laws for “Intoxicating liquors, that is to say, the production, manufacture, possession, transport, purchase and sale of intoxicating liquors.”
• However, under Entry 33of the Concurrent List both the state and Union governments can make laws on the products of any industry, even if Parliament has granted control to the Union in public interest.
• And therein lies the confusion of who has the power to regulate industrial alcohol—the state or the Union.