Gujarat selectively lifted its prohibition law in December 2023, allowing liquor in 'wine and dine' areas of GIFT City via permits.
The state home department further relaxed the law last month to allow liquor sales in any 'Food & Beverage' area within GIFT City.
Gujarat has been a dry state since its formation on May 1, 1960, inheriting a 1949 prohibition law.
In 2005, Gujarat allowed three-year drinking permits in its 20 Special Economic Zones (SEZs) for non-residents above 21.
In 2016, Gujarat introduced a minimum two-year jail sentence (up to 10 years) for drinking and possessing alcohol.
IMFL worth around Rs 250 crore is seized annually in Gujarat, often smuggled from neighboring states.
Detailed Insights:
The relaxation of Gujarat's prohibition law is aimed at attracting foreign investment, particularly in GIFT City, which some perceive as lacking after-hours vibrancy.
Previous attempts to relax the law faced opposition from Gandhian activists and women's rights groups, reflecting social sensitivities around alcohol consumption.
Amendments to the prohibition law often coincide with the Vibrant Gujarat investor summits, indicating a strategic effort to improve the state's business environment.
Despite relaxations, alcohol consumption remains a social taboo in Gujarat, with initial permit processes in GIFT City deemed cumbersome, leading to low uptake.
The state government has tightened surveillance on liquor smuggling and introduced stringent punishments, including the death penalty in cases of toxic alcohol-related deaths.
Amendments to the prohibition law have not been debated in the state Assembly, reflecting the political sensitivity of the issue and the BJP's dominance.
Key Concepts Involved:
Prohibition Law: A legal ban on the production, sale, and consumption of alcoholic beverages.
GIFT City: An ambitious project to create a global financial and technology hub in Gujarat.
Special Economic Zone (SEZ): A designated area with different economic regulations designed to promote trade and investment.