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Liquor Mafia in India

In: Business and Management

Submitted By navin7787
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Pages 7
A Study on Liquor Mafia in India
By
Kadapa Naveen Chandra Prakash
Roll.no. C0654403
2016W_BUS 1013_2
Date: 27th January 2016
Professor: Terry Peddlesden

Executive Summery
The study is to find the economic, political and social influence of liquor on society. We would discuss about the consequences of ban on liquor and its effects. What are the regulations made by the government to sell liquor by retailer, how they took advantage of loop holes present in the system. Discussion of ethical dilemma for government about liquor business, their industry and impact on society. To analyze the dilemma faced by organizations, economical situations and their social responsibility. How evil forces exploiting these conditions to benefit them, in which most of them are work for government officials, politicians and retailers.
The society had adverse effects from persons addicted to alcohol. Alcohol is held responsible for a clichés of accidents and injuries in India, including road traffic trashes. The deaths caused by alcohol poisoning has been at alarming state.
The regulations made by government of India inefficient. Prevention programs and treatment facilities are wholly insufficient to meet India's needs. It can be anticipated that alcohol use and related problems will grow in India in the future. Unless planned policy changes are designed and vigorously implemented these problems are likely to produce an excessive burden on this developing country's resources.

Introduction
Alcohol consumption has been a tradition since ages and it plays a significance role in religion culture and medicine. Alcohol is become a part of celebrations like birthdays, marriages, festivals. In other words right from human birthday to his death every major occasion has to be filled with alcohol. Limited amount of alcoholic drinks considered is acceptable and good for health in all countries but if it cross the limit it is widely responsible for abusing the others and now most of the countries declare alcoholism is a disease.
There are two types of liquors made in India, Indian made foreign liquor (IMFL) namely rum, whisky, wine, beer, tequila. The liquids consist not more than 43% of alcohol by volume and 35% by weight. The other form of liquor predominantly made in rural parts of India are Fenny, Toddy etc. Sumitra`s (2015) study found following:
“A global study has found out that alcohol consumption in India has risen by 55% over a period of 20 years. More worryingly, the young are getting initiated to alcohol much earlier, while more women are indulging in hazardous and binge drinking. The Paris-based Organization for Economic Cooperation and Development (OECD) recently published a report examining the economic and health implications of alcohol use among its 34 member and a few non-member countries. Among a list of 40 nations, India got the third position, only after Russian Federation and Estonia, for shooting alcohol intake between 1992 and 2012. Countries that closely followed India were China, Israel and Brazil”.

Liquor Mafia in India
There are around 40000 retail outlets for liquor sales and its distribution is under government control. The respective states issue a floor price on which bidders has to quote the price, highest bidder would get that year contract to sell the liquor in respective area. The first sign of scam came out when in Andhra Pradesh ACB (Anti-Corruption Bureau) which is under control of Chief Minister of that state found out that selling the alcohol with higher prices than MRP fixed by government. The ACB probe came to know there is link between retailers, liquor syndicates, government officials, MLA’s (member of Legislative assembly) and other politicians. The ACB Informed court about the number of persons arrested over 70 people who include employees of excise department and police officials worth Rs 15,000 crore. This is just statistics of one state and every state have similar problems (“Liquor Scam Worth”, 2012).
There is similar kind case was repeated where a constable was beaten to death by liquor mafia on 27th December 2013, in border of capital city of India. Haryana and Delhi are adjacent states prone to smuggling of liquor at a very high rate. The main reason for smuggling is price, for instance one liter bottle of black label cost around Rs. 3,450 whereas the same bottle cost only Rs. 2200 in Haryana. The variation is because of states license system, in Delhi the government will take care of liquor business and in Haryana that is in the hands of private persons win over biddings. In span of six months it was reportedly said 180,000 bottle of liquor was seized and the very next year it went 140,000 bottles. The number of cases was in rise from 10% to 500%. This smuggling is become thorn in the flesh for Delhi as they tend to lose Rs. 250 crores per year (Kumar, 2014).
Another kind of scam is manipulation of alcohol or so called “Bootlegging” before reaching the customer. When a load of bottles are handed over to certain skill people where they open the seal, takeout 25% to 40% of liquid of original wine and mix with it either with water, spirit or cheap liquor and seal them back. By doing so they are nearly getting double the profit on single bottle. It not only affect economy of state but also damages the health of people at great deal.
In 2009 Gujarat 136 lives were lost in single incident, 94 people in Maharashtra died by consuming toxic liquor, recently in Andhra Pradesh 10 people were died of same reason in an unsilenced bar (”Six die after consuming”, 2015). The other major problem is with liquor made in rural areas, country liquids with lack of quality checks results in impurities which include heavy metals like Arsenic, Lead, organic solvents, and mostly when methyl alcohol is present leads to death or serious orphan damage like losing eye sight.
Can Government Ban Liquor?
Few Indian states like Andhra Pradesh and Haryana started their political campaign by saying prohibition of alcohol at all levels, they were successes and came into ruling. Here is interesting thing, approximately 30% state revenue was because of alcohol sales, now with ban on alcohol states went into deficit which make them increase alternatives like bus fares, land registrations, sales tax etc. However after a term or so government lifted ban on alcohol with unexpected criticism in news. They can`t ban liquor because of following reasons: * Curbs the civil rights of the citizens. * Economy is mostly dependent on sales of alcohol, so if it is banned country would face great financial loss. * Banning could prove unemployment and thousands of worker loses jobs. * Ban would impact source of revenue used for public.
Effects of Alcoholism:
The effect of alcohol on body varies with amount of consumption, and lead to physical and mental disorders, possible short term dangers are falling down, household accidents and vehicle accidents. The other major problems include following: * Excessive intake of alcohol Causes liver diseases Cirrhosis * Oral cavity and Esophagus cancers are common with alcohol * Alcohol is held responsible for a substantial proportion of accidents and injuries in India, including road traffic trashes. * Social problems like increase in violence and crime, workplace effects and family effects * Economic issues pertaining to revenue.

Conclusion
Alcohol has been used in India for a very long time, but the amounts consumed and problems associated have increased in a decade. Distilled alcoholic liquor are the ones drunk most frequently, but beer has become more popular among the youth. Besides licensed beverages, illicit alcohol is widely available and may amount to half again the quantity of legal alcoholic beverages.
The government has clearly in the state of ethical dilemma, if they ban alcohol they recurring huge loses to the government. If they are liberal, mafia has been like spreading and causing financial loss. The best way to gain the public confidence is to implement strict laws so that everyone get benefited, but those laws which currently existing nowhere near the expectations, These have already created serious public health problems and they also impede the development of poorer regions of the country. Policy responses to date from the central and state governments have been inadequate and inconsistent, resulting in the unopposed promotion of alcohol in most of the country, while a few states maintain partial or complete prohibition. Prevention programs and treatment facilities are wholly insufficient to meet India's needs. It can be anticipated that alcohol use and related problems will grow in India in the future. Unless planned policy changes are designed and vigorously implemented these problems are likely to produce an excessive burden on this developing country's resources.

References
Kumar. V (2014, Jan 2). Murdered by the liquor mafia: How thriving Delhi bootleggers pose a lethal risk to the excise department, Mail Indian Online. Retrieved from http://www.dailymail.co.uk/indiahome/indianews/article-2532284/Murdered-liquor-mafia-How-thriving-Delhi-bootleggers-pose-lethal-risk-excise-department.html

Liquor scam worth Rs. 15,000 crore: ACB (2012, February 23), The Hindu. Retrieved from http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/liquor-scam-worth-rs-15000-crore-acb/article2921872.ece

Sumitra. R (2015, May 17). Indians drinking alcohol up 55% in 20 years, The Times of India. Retrieved from http://timesofindia.indiatimes.com/india/Indians-drinking-alcohol-up-55-in-20-years/articleshow/47313965.cms

Six die after consuming spurious liquor in Andhra’s Vijayawada (2015, December7), Hindustan Times. Retrieved from http://www.hindustantimes.com/india/six-die-after-consuming-spurious-liquor-in-andhra-s-vijayawada/story-YzObhRheA7EniGnsj3BCeJ.html

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