Download - Home Prohibition 4
HOME, PROHIBITION AND EXCISE DEPARTMENT
DEMAND NO.37
PROHIBITION AND EXCISE
POLICY NOTE
2013 – 2014
NATHAM R. VISWANATHAN Minister for Electricity, Prohibition and Excise
©
GOVERNMENT OF TAMIL NADU
2013
INDEX
Sl. No.
Subject Pages
1. Introduction 1 – 2
2. Department of Prohibition and Excise – Organisation and Functions
2
3. Commissionerate of Prohibition and Excise
3 – 10
4. Prohibition Enforcement Wing 11 – 19
5. Tamil Nadu State Marketing Corporation Limited
19 – 26
6. Narcotic Intelligence Bureau CID 26 – 36
7. Conclusion 36 – 37
Annexures I – VII 38 – 51
HOME, PROHIBITION AND EXCISE DEPARTMENT
Demand No.37
PROHIBITION AND EXCISE
Policy Note 2013–2014
INTRODUCTION
The Constitution of India under Entries 8 and
51 of the State List of the Seventh Schedule provides
powers to the State Government with regard to the
manufacture, possession, transport, purchase and sale
of intoxicating liquors and for levying duties of excise
on alcoholic liquors for human consumption.
The Excise Policy of the State has been pursued for 21
years without any change. It was decided on 16.7.1991,
that the sale of arrack and country liquor will be banned.
The Government had to forego the revenue realised out
of the vending of country liquor when the Government
took this Policy decision. But with a view to ensure that
the health of the poor people who consume arrack and
country liquor is not affected and to prevent loss of lives
2
due to consumption of poisonous arrack adulterated
with toxic substances, this policy was arrived at. It has
been in continuous existence till now.
2. DEPARTMENT OF PROHIBITION AND
EXCISE – ORGANISATION AND FUNCTIONS
The following are the four wings functioning
under the administrative control of the Home,
Prohibition and Excise Department of Tamil Nadu.
1. The Commissionerate of Prohibition and
Excise
2. The Prohibition Enforcement Wing
3. The Tamil Nadu State Marketing Corporation
Limited (TASMAC)
4. The Narcotics Intelligence Bureau(NIB)
3
3. COMMISSIONERATE OF PROHIBITION AND EXCISE
The Commissioner of Prohibition and Excise
enforces the Tamil Nadu Prohibition Act 1937, and the
Rules made there under. The details of Act and Rules
administered by the Prohibition and Excise Department
are given in Annexure – I.
Two Joint Commissioners in the Cadre of District
Revenue Officer and Five Assistant Commissioners in
the cadre of Deputy Collector assist the Commissioner
at Headquarters.
The Commissioner is responsible for enforcing
various provisions of the Tamil Nadu Prohibition Act
1937 (Tamil Nadu Act X of 1937) and the Rules made
there under. He is vested with powers of granting
privileges and licences with prior approval of the
Government for the establishment of Distilleries, Indian
Made Foreign Spirit, Wine and Beer manufacturing
units and for renewing their licences annually.
The District Collector supervises the excise
administration at the district level. He exercises various
statutory powers under the Tamil Nadu Prohibition Act,
4
1937 and the Rules made there under. The Collector is
assisted by an Assistant Commissioner Excise in the
cadre of Deputy Collector in all Districts, except
Chennai and Coimbatore, where Deputy
Commissioners (Excise) in the cadre of District
Revenue Officer are assisting the Collectors. In the
Distilleries and IMFS, Beer and Wine manufacturing
units, Deputy Collectors are posted as Distillery Officers
and Excise Supervisory Officers respectively. Officers
of the Revenue Department in the cadre of Tahsildar
and Deputy Tahsildar are posted as Excise Supervisory
officers and Bonded Manufactory officers in the
chemical units and Bonded Warehouses.
Sugar Mills and Molasses
Molasses is a major by-product obtained during
the process of manufacture of sugar from sugarcane.
This is being used as the raw material in the
manufacture of alcohol. There are 46 sugar mills in the
State, out of which, 16 are in the Co-operative Sector, 3
in the Public Sector and 27 in the private sector. The
details of permitted storage capacity and actual
production of molasses are given in Annexure-II.
5
Commissioner of Prohibition and Excise is the
Molasses Controller of the State as per the Tamil Nadu
Molasses Control and Regulation Rules, 1958.
The issue of licence and permits for possession,
sale, use, transport, import and export of molasses is
governed by the competent authorities as per the above
rules.
During surplus periods, molasses is allowed to
be exported, with the prior approval of the Government.
The District Collectors are the competent authority to
issue licence and permit for Export and Import of
Molasses. For the import and export of molasses an
administrative service fee of Rs.300 per metric tonne is
levied.
Distilleries and Alcohol
Alcohol is used as raw material in the
manufacture of Indian Made Foreign Spirit products,
other chemicals and varnish. It is also used in small
quantities by educational institutions, laboratories,
research institutions etc.
There are 19 Distilleries in the State,
manufacturing alcohol. Of these, 17 are in the Private
6
Sector and 2 are in the Co-operative Sector.
The details of production of spirit are furnished in the
Annexure – III.
Grain Based Extra Neutral Alcohol (ENA)
Grain based ENA is used in the manufacture of
high quality premium IMFL brands. At present, Tamil
Nadu does not have any grain based ENA producing
distillery and it is imported by private IMFL units from
other States.
Ethanol
The Government of India in its Gazette-
Extraordinary, Ministry of Petroleum and Natural Gas
notification, dated 3.9.2002 resolved that 5% ethanol
blended petrol will be supplied in 9 States including
Tamil Nadu and 4 contiguous Union Territories. Again
the Government of India in the Gazette Extraordinary
dated January 2, 2013 by the notification by Ministry of
Petroleum and Natural Gas has directed that the Oil
Marketing Companies shall sell Ethanol-blended-petrol
with percentage of ethanol up to 10% and as per the
Bureau of Indian Standard Specification to achieve
5% ethanol blending across the Country as a whole.
7
Further the Government of India, Ministry of Petroleum
and Natural Gas has directed the Oil Companies that
the 5% mandatory blending will be reckoned for the
country as a whole and it be achieved by 30.6.2013.
Since use of ethanol, reduces air pollution and
saves valuable foreign exchange by reducing crude oil
import, the Government of Tamil Nadu revived the
policy to produce ethanol for blending with petrol.
Such a policy was in force from 1.1.2003. However
production of ethanol was stopped from 13.12.2006.
The Government in G.O.Ms.No.12, Home, Prohibition
and Excise Department, dated 26.3.2012 permitted to
resume ethanol production in Tamil Nadu and there are
8 Licensed Distilleries who are licensed to produce
ethanol. The details are given in the Annexure–IV.
The above distilleries were allotted 1.2 lakh MTs
of molasses up to 30.9.2012 to produce Ethanol. The
above 8 Distilleries have produced and created a stock
of 43.90 lakh litres of ethanol which is ready for supply
to Oil Companies. A quantity of 1.5 lakh MTs of
molasses has been allotted for production of Ethanol for
8
the current year from March 2013 to February 2014.
The distilleries have been permitted to produce and
supply 4.5 crore litres of Ethanol to Oil Companies
during this period.
So far two Oil Companies, Hindustan Petroleum
Corporation Limited (HPCL) and Bharat Petroleum
Corporation Limited (BPCL), have issued Letter
of Intent to 4 Distilleries to supply a quantity of
1.51 crore litres in the first phase. The process of
entering into agreement and submission of Bank
Guarantees is in progress between the Distilleries and
Oil Companies. Once Delivery Orders are issued by the
Oil Companies, the Distilleries will start the supply of
Ethanol.
The basic price offered per litre of Ethanol by the
Oil Companies ranges between Rs.34.50 and Rs.35.18.
The inflow of additional Revenue on account of the sale
of ethanol by the Distilleries strengthens their cash
reserves and enables the prompt settlement of payment
to sugarcane growers.
9
Indian Made Foreign Spirits, Beer and Wine Manufacturing Units
11 Indian Made Foreign Spirits manufacturing
units, 6 Beer manufacturing units and one Winery unit
are functioning in Tamil Nadu. The details are given in
Annexure–V.
Import of Foreign Liquor
To cater to the requirements of foreign tourists,
star hotels and recreational clubs import of foreign
liquor is permitted from other countries by the
Commissioner of Prohibition and Excise for which a
special fee is levied. From 2.3.2012 onwards, TASMAC
has been made the sole canalising agency for the
import of foreign liquor. The revenue earned through
special fees on foreign liquor is as follows.
Sl. No.
Financial year Special fee
1. 2008 – 2009 Rs.1.46 crores
2. 2009 - 2010 Rs.1.57 crores
3. 2010 – 2011 Rs.1.86 crores
4. 2011 – 2012 Rs.1.96 crores
5. 2012 – 2013 Rs.2.70 crores
10
In addition to the special fee, 58% VAT is also
levied on the sale of foreign liquor.
State Excise Labels
Excise Labels are being issued to IMFS and
Beer manufacturing units and TASMAC to affix them on
the IMFS, Beer bottles manufactured locally and those
imported from other states with the aim of ensuring
proper accounting of excise revenue and for preventing
the flow of illicit liquor into the State.
From 2003 onwards, the Government has
ordered the use of polyester hologram excise labels
with State- of art technology by dispensing with the
earlier practice of using black ink printed paper labels
and by prescribing clear technical specifications to
prevent movement and sale of illicit and spurious
liquor. As a result, tamper proof high security holograms
are used on IMFS, beer and wine bottles, sold in the
State. These labels are manufactured by a private
company selected through an open tender.
At present, the average monthly requirement of excise
labels is 24.8 crore. The Government earns a revenue
of Rs.1.73 crores per month approximately by the sale
of excise labels.
11
4. PROHIBITION ENFORCEMENT WING
The Prohibition Enforcement Wing (PEW) is
functioning with avowed objective of eradicating illicit
distillation, transportation, possession and sale of illicit
liquor and preventing smuggling of spurious liquor and
unexcised IMFS.
The Additional Director General of Police
(Enforcement) is the head of this unit. He is assisted by
an Inspector General of Police, (Enforcement), a
Superintendent of Police, Central Investigation Unit at
Chennai and a Superintendent of Police (Enforcement)
each at Chennai, Salem and Madurai zones.
The Superintendent of Police, Central Investigation Unit
is assisted by 2 Deputy Superintendents of Police,
6 Inspectors of Police, 8 Sub-Inspectors of Police and a
Head Constable.
There are 94 PEW units functioning in the State.
These PEW units, headed by Inspectors of Police, are
declared as Police Stations for enforcing the
Tamil Nadu Prohibition Act 1937 and they are
supervised by Deputy Superintendents of Police and
Additional Superintendents of Police in Districts / Cities.
12
The PEW units and its Officers work under the
administrative and operational control of the District
Superintendents of Police and the Commissioners of
Police who have the primary role of enforcing
prohibition.
Measures to curb the movement of spurious liquor / Rectified Spirit from neighbouring States
Check Posts
To restrain the infiltration of spurious, unexcised
IMFL, Rectified Spirit Arrack sachets, from neighbouring
states into Tamil Nadu, 21 prohibition check posts had
been established in Nagapattinam, Cuddalore,
Villupuram, Krishnagiri, Salem, The Nilgiris, Thiruvarur,
Thiruppur and Coimbatore Districts. During 2012,
Eight more prohibition check posts have been set up in
the districts of Vellore (3), Thiruvallur (2),
Krishnagiri (1), Erode (1) and Chennai (1) and thus at
present there are totally 29 Prohibition Check Posts in
the State. Apart from this, six mobile check posts are
also functioning in Nagapattinam, Cuddalore,
Villupuram, Krishnagiri, Thiruvallur and Thiruvarur
districts.
13
Surprise Vehicle Check
Rectified Spirit is a highly concentrated form of
alcohol. It is generally transported for selling as
unexcised cheap liquor. Many a time such liquor also
results in hooch tragedies. On the basis of intelligence
collected by the staff of Central Investigation Unit and
PEW Units, surprise vehicle checks are being regularly
organised throughout the State. During 2012–13,
48 cases were registered on the basis of surprise
vehicle checks and a total number of 47 vehicles
including 1 Tractor, 8 Lorries, 13 Vans, 19 Cars,
2 Autos and 4 Motor cycles seized.
Rewards to Informants
As per Letter (D) No.167, dated 4.10.2012 of
Home, P&E (VI) Department, TASMAC has been
permitted to sanction a sum of Rs.10 lakhs, for giving
cash awards to informants who give information to
about the smuggling of Rectified Spirit / Spurious liquor.
The informants are being rewarded through the District
Superintendents of Police.
14
Performance and achievements during the financial year 2012-13
During 2012-13, 11.75 lakh litres of illicitly
distilled arrack worth Rs.4.70 crores, 2.09 lakh litres of
Rectified Spirit worth Rs.2.09 crores, 8.13 lakh IMFL
bottles worth Rs.8.13 crores smuggled from other
States and other varieties of liquor worth Rs.31.62 lakhs
were seized and destroyed. 1782 motor vehicles
engaged in prohibition offences were seized.
11 spurious liquor units were busted in Chennai,
Coimbatore, Vellore, Cuddalore, Thanjavur, Erode,
Villupuram and Kancheepuram districts.
Preventive Detention (Tamil Nadu Act 14 / 1982)
Notorious Bootleggers, Interstate Rectified Spirit
and Spurious liquor smugglers and financiers, persons
involved in spurious liquor blending, Illicit Arrack
distillers and Arrack / Rectified Spirit / Spurious liquor
sellers are being detained under Tamil Nadu Act
14/1982. During 2012-13, a total of 216 such habitual
prohibition offenders were detained under this Act.
15
Steps taken to avert Hooch Tragedies
Methanol which was the main reason for causing
hooch tragedies was in 2002 brought within the ambit
of the Tamil Nadu Prohibition Act, 1937. Suitable
amendments were also made in 2002 in Tamil Nadu
Denatured Spirit, Methyl Alcohol and Varnish (French
Polish) Rules, 1959 to maintain a strict control over
possession, use, transportation, import, sales etc., of
Methanol.
The District Superintendents of Police have also
been instructed to check all the 89 Methanol
manufacturing units, end-users, factories, industries
that have license to possess Methanol in the State and
their monthly reports are analysed closely at the
Enforcement Headquarters. The last major hooch
tragedy occurred in 2008 resulting in the loss of
49 lives.
16
Liquor deaths in the last 10 years is detailed below:-
Liquor Deaths Year
Incidents Deaths
2004 2 5
2005 2 10
2006 2 5
2007 0 0
2008 2 49
2009 0 0
2010 0 0
2011 0 0
2012 0 0
2013 0 0
Awareness about the evils of illicit liquor and methanol
To create an awareness among the public about
the evils of consuming liquor, the Government
sanctioned Rs.10 lakhs initially during the year 2003-04
and Rs.30 lakhs during the year 2004-05. After a lapse
of about seven years the Government once again
sanctioned Rs.1 crore as per G.O.Ms.No.59, Home
Prohibition and Excise department, dated 1.12.2011 for
this purpose. During 2012-13 also, the Government
sanctioned Rs.1 crore as per G.O.Ms.No.30, Home,
17
P&E Department, dated 11.7.2012 for conducting
similar Awareness Campaigns. Funds were distributed
to all districts (Rs.2 lakhs each) to conduct awareness
campaigns such as Rallies, Camps, Seminars, Street
plays, Documentary films, Pamphlets, Advertisement in
public places, Essay competitions, Elocution
competitions etc. all over the State. On 15.4.2013, a
massive awareness rally with 5000 participants was
conducted in Chennai to create awareness among the
youth. A Seminar was also conducted for the benefit of
college students. Such activities are aimed at the twin
objectives of creating awareness to prevent people from
becoming addicts to drinking and for weaning away
those who are already addicted to this habit.
In 2013-14, a short film on the evils of liquor is
proposed to be produced will be shown in educational
institutions and cinema theatres throughout the State.
Rehabilitation fund for prohibition offenders
The Government is of the firm belief that by
providing sustainable rehabilitation assistance to
prohibition offenders, the production and sale of illicit
liquor can be effectively contained.
18
In 2003-04, the Government for the first time,
sanctioned assistance as loan to rehabilitate the
persons who had been convicted for distillation and
sale of illicit liquor.
In the year 2011-12, the Rehabilitation fund was
enhanced to Rs.5 crores and converted into a Grant.
Similarly, Rs.5 crores was sanctioned as a grant
towards Rehabilitation in 2012-13 also.
The loan amounts / grants sanctioned and the
number of beneficiaries in the last ten years is furnished
below:-
Year
Amount allotted
(Rs. in lakhs)
Number of
beneficiaries
2003-04 178.70 1390
2004-05 250.00 2121
2005-06 250.00 2022
2006-07 250.00 1926
2007-08 250.00 2004
2008-09 250.00 1651
2009-10 220.00 1569
2010-11 220.00 1524
2011-12 500.00 (Grant) 1898
2012-13 500.00 (Grant) 1900
19
In each district, a Rehabilitation Committee has
been constituted with the District Collector as
Chairman, the Superintendent of Police of the District,
the Senior Regional Manager, TASMAC and the
Assistant Commissioner (Excise) as members to
distribute the grant to prohibition offenders, for their
economic rehabilitation.
The financial assistance is being provided for
various schemes such as distribution of milch cows,
goats, petty eateries, hand carts for selling vegetables,
flowers, fruits, fish etc. A sum of Rs.5 crores has been
provided by the Government in the Budget for the
financial year 2013-14 also.
5. TAMIL NADU STATE MARKETING CORPORATION LIMITED
Incorporation
The Tamil Nadu State Marketing Corporation
Limited (TASMAC) was incorporated on 23.05.1983
under the Companies Act, 1956 to take over the
wholesale distribution of IMFS, Beer and Arrack in
Tamil Nadu, from the private sector. TASMAC took
20
over the whole sale distribution of IMFS, Beer and Wine
from that date.
TASMAC is also carrying on the retail sale of
liquor from 29.11.2003 successfully. This exclusive
privilege of wholesale and retail vending of liquor for
the whole State of Tamil Nadu has been
granted to TASMAC under sections 17-C (1-A)(a) and
17-C (1-B)(a) of the Tamil Nadu Prohibition Act, 1937.
Board of Management
The Board of Directors of TASMAC directs and
controls the activities of the Corporation. The Hon’ble
Minister for Electricity and Prohibition & Excise is the
Chairman of TASMAC. The Principal Secretary to
Government, Home, Prohibition and Excise
Department, the Principal Secretary to Government,
Finance Department, the Secretary to Government,
Commercial Taxes and Registration Department, the
Commissioner of Prohibition and Excise and the
Managing Director, TASMAC are the members in the
Board of Management.
21
TASMAC has an authorized capital of Rs.15.00
crores. The entire share capital of Rs.15.00 crores has
been contributed by the Government.
Organisation Structure
In the Corporate office of TASMAC, situated at
Chennai, the Managing Director is assisted by the Chief
General Manager (Finance) & Company Secretary, the
General Manager (Wholesale & Administration) and the
General Manager (Retail Vending) and the General
Manager (Personnel Welfare) and other supporting
staff.
There are 5 Regional Offices at Chennai,
Coimbatore, Madurai, Salem and Tiruchirapalli. These
offices are headed by the General Managers (Region)
in the cadre of District Revenue Officers. TASMAC has
33 District Managers Offices and 41 IMFS Depots.
The Depots, Retail Shops and Bars attached to the
shops in a district are managed by the concerned
District Manager.
Retail Vending Employees
At present, 6,835 retail shops and 4,631 bars
attached to the retail shops are functioning in the State.
22
7,085 Supervisors, 15,984 salesmen and 3,679
Assistant Salesmen are working in these shops bars.
They are paid a consolidated remuneration on a
monthly basis.
TASMAC implements a number of Welfare
schemes for the benefit of the employees. In addition
to their monthly remuneration, they are being paid
Bonus and Ex-gratia at 20% every year. TASMAC
contributes to the Employees’ Provident Fund
maintained by the EPF Commissioner and also
implements a number of medical schemes for their
welfare. An amount of Rs.248 crores per annum is thus
spent towards the pay other welfare measures for the
Retail Vending personnel.
Working hours of Retail Vending Personnel
In the shops functioning in the Corporation
areas, 1 Supervisor and 4 Salesmen are provided.
The shops functioning in the Municipalities and Town
Panchayats have a sanctioned strength of 1 Supervisor
and 3 Salesmen. Similarly, in the shops functioning in
Village Panchayat Areas, 1 Supervisor and 2 Salesmen
are sanctioned. TASMAC shops function from
23
10.00 a.m. to 10.00 p.m. every day (12 hours).
The Salesmen and Assistant Salesmen work for
6 hours at a time in 2 shifts. All of them are eligible for
a weekly holiday.
Location of Retail Vending Shops
All the retail vending shops of TASMAC are
located as per the norms prescribed under rule 8 of the
Tamil Nadu Liquor Retail Vending (in Shops and Bars)
Rules, 2003. As per this Rule, no shop shall be
established in Municipal Corporations and
Municipalities within a distance of 50 (fifty) meters and
in other areas 100 (hundred) meters, from any place of
Worship or Educational Institutions. The sentiments of
the people of a locality are taken into account and
respected when locating the retail vending shops.
Increase in Number of Dry Days
There is no sale of liquor on dry days. The
number of dry days has been increased by a
Government Order from 5 to 8 with effect from
03.01.2012. Accordingly, there is no sale of liquor on
Gandhi Jayanthi, Thiruvalluvar Day, Mahaveer
24
Jayanthi, Meelad-un-Nabi, Vallalar Ninaivu Naal,
Independence Day, Republic Day and May Day.
Procurement of liquor
TASMAC procures and sells IMFS, Beer and
Wine from the 11 IMFS Units, 6 Breweries and
1 Winery functioning in the State. Ordinary, Medium
and Premium IMFS brands are sold in the retail vending
shops to cater to the needs of the various income
groups of consumers.
Depots
Liquor products purchased by TASMAC are
stocked in 41 Depots for being sold to licenced Clubs
and Hotels (FL2 & FL3 licensees) and also transferred
to retail vending shops for sale to consumers. Out of the
41 depots, 27 depots are functioning in own godowns of
TASMAC. 3 more godowns are being constructed at a
cost of Rs.8.00 crores.
Special Flying Squads
Orders were issued in September, 2012 vide
G.O.Ms.No.46, Home, Prohibition and Excise
Department, dated 3.9.2012 sanctioning 5 posts in the
cadre of Deputy Collectors for heading the
25
Special Flying Squads, formed for checking the
proper functioning of the TASMAC retail shops.
Billing machines
To avoid delay and mistakes which occur when
preparing manual cash bills and for easy maintenance
of accounts of retail sales and closing stock tenders
were called for supply of billing machines to TASMAC
retail shops and in the first phase, billing machines will
be supplied to 2500 shops shortly.
Government revenue
As per Item 51 of the 7th Schedule – List II– State
list of the Constitution of India, duties of Excise on
alcoholic liquors for human consumption manufactured
or produced in the State and countervailing duties at the
same or lower rates on similar goods manufactured or
produced elsewhere in India can be levied by the State
Government. Accordingly, the Government of
Tamil Nadu levies Excise Duty on the alcoholic liquors
for human consumption manufactured in Tamil Nadu
and levies Special Fee for the goods manufactured
outside Tamil Nadu but sold in Tamil Nadu.
26
The details of Government revenue earned from
the sale of liquor is given below:–
Excise Revenue
Sales Tax
Total Sl. No.
Year
(Rs. in Crores)
Growth
(%)
1. 2003 – 04 1657.10 1982.83 3639.93 --
2. 2004 – 05 2549.00 2323.03 4872.03 33.85
3. 2005 – 06 3176.65 2854.12 6030.77 23.78
4. 2006 – 07 3986.41 3487.20 7473.61 23.92
5. 2007 – 08 4764.05 4057.11 8821.16 18.03
6. 2008 – 09 5755.42 4846.08 10601.50 20.18
7. 2009 – 10 6740.59 5757.63 12498.22 17.89
8. 2010 – 11 8115.90 6849.52 14965.42 19.74
9. 2011 – 12 9956.06 8125.10 18081.16 20.82
10. 2012 – 13 (Provisional)
12125.31 9555.36 21680.67 19.91
The graphical depiction of the revenue is
indicated in Annexure–VI.
6. NARCOTIC INTELLIGENCE BUREAU CID
The NIB CID Unit was first formed in Tamil Nadu
at Chennai on 17.12.1963. Through Government
Orders issued in 1987, 1990, 1994 and 1995 NIB CID
units were started in Tiruchirapalli, Madurai, Salem,
Dindigul, Theni, Kallakurichi, Ramanathapuram,
27
Coimbatore, Thoothukudi, Vellore, Nagapattinam,
Kancheepuram, Sivagangai and Kanniyakumari.
At present there are total of 15 NIB CID units
functioning in various parts of the State. The main
function of NIB CID is to collect intelligence and take
action against persons indulging in criminal activities
such as manufacturing, consumption and trafficking of
Narcotic Drugs and Psychotropic Substances.
Organisational set up
The NIB CID which functions under the Home,
Prohibition and Excise Department is led by a
Additional Director General of Police, Crime and has an
Inspector General of Police, (Special Investigation
Team), a Deputy Inspector General of Police, CB CID
(SIT), a Superintendent of Police an Additional Deputy
Superintendent of Police, 12 Deputy Superintendents of
Police, 16 Inspectors of Police, 17 Sub-Inspectors of
Police and 126 Constables. The hierarchy is given in
Annexure–VII.
28
Coordination with NCB
Narcotic Drugs and Psychotropic Substances
Act, a Central Act was enacted in the year 1985, and it
is implemented in all States. NIB CID has close liaison
with Narcotic Control Bureau, which is under the direct
control of Central Government. The Narcotics Control
Bureau of the Central Government gives information in
connection with the cultivation of ganja plants by way of
satellite monitoring control system, NCB also gives
valuable training programmes about Narcotic Drugs and
Psychotropic Substances to NIB CID officials working
under the State Government. This training programme
improves the performance of the NIB CID.
Some Important Points Concerning the Narcotic Drugs & Psychotropic Substances Act, 1985
• No one should cultivate any coco plant
or gather any portion of coco plant.
• No one should cultivate the poppy or
any cannabis plant.
29
• Coco, poppy or cannabis can be
cultivated for medicinal use and
scientific research purpose only on the
permission of Central Government.
• No one should produce, manufacture,
possess, sell, purchase, transport,
consume, import or export any
Narcotic Drugs or Psychotropic
Substances.
• If the investigation officer has reason
to believe that the accused through
this illegal activity has acquired or
received or used any property, he can
issue orders to confiscate the same.
The owner of such property should not
sell, alter or use for other purposes the
same without the approval of the
investigation officer or the Competent
Authority.
30
Punishment details under Narcotic Drugs & Psychotropic Substances Act,1985
• Possession up to 1 Kg. of ganja or up to
5 gms. of heroin is an offence (small
quantity) punishable with 6 months
imprisonment or with fine of Rs.10,000/-
or with both.
• Possession of 1 Kg. to 20 Kgs. of ganja or
6 gms. to 250 gms. of heroin is an offence
(medium quantity) punishable with
10 years imprisonment or with fine of
Rs.1 lakh or with both.
• Possession of above 20 Kgs. of ganja or
above 250 gms. of heroin is an offence
(commercial quantity) punishable with
10 to 20 years imprisonment or with fine
of Rs.1 lakh to Rs.2 lakhs or with both.
• If any person indulges habitually in any of
the offences punishable under this Act, he
shall be punished with rigorous
imprisonment for a term which may
31
extend to 1½ times the maximum term of
imprisonment and also be liable to fine
which could extend to 1½ times the
maximum amount of fine.
• If any person has been habitually
committing or attempts to commit or is
involved in criminal conspiracy any of the
offences punishable under this Act and for
habitually committing offences involving
possession of commercial quantity of any
Narcotic Drugs or Psychotropic
Substances or finances directly or
indirectly for these illegal activities he
shall be punishable with death penalty.
Prevention of Illicit Traffic of Narcotic Drugs and Psychotropic Substances.
Prevention of Illicit Traffic in Narcotic Drugs and
Psychotropic Substances Act, 1988 (Central Act 46 of
1988) enacted by the Government of India came into
force with effect from 01.07.1988. Under this Act, the
Central and the State Governments have been
empowered to detain persons engaging in illicit traffic in
Narcotic Drugs and Psychotropic Substances. The
32
offenders are detained for a minimum period of one
year and a maximum period of two years from the date
of detention, under this Act.
Efforts taken to curb Narcotics Usage
During the last year, the NIB CID detected
1725 cases and arrested 1759 persons. In these cases,
1792.750 Kgs of dry Ganja, 0.800 Kgs of Cocaine,
1.064 Kgs of Heroin, 1.015 Kgs of Brown Sugar and
119.500 Kgs of Green Ganja, valued at Rs.4.73 crores
has been seized. Further, 21 notorious drug offenders
have been detained under the Act 14 of 1982, known as
the Goondas Act.
Further, 2 more notorious drug offenders have
been detained in 2013.
Awareness Campaign
The NIB CID Unit has conducted an awareness
programme under the banner of “The Friends of Police
Drug Busters”.
Under this, selected Professors / Teachers and
Students are participating as Friends of Police.
They provide awareness to the youth about the dangers
of drug addiction and give them suitable counseling.
33
So far 665 educational institutions have been enrolled
under this programme and 655 Professors / Teachers
have been appointed as Drugbuster counsellors.
40,000 students have also been enrolled as
Drugbusters. These drug busters have created
awareness about drug abuse among 2 lakh students.
Sanctions of 2012-13
The Government sanctioned Rs.36,32,430/- in
G.O.Ms.No.56, Home, Prohibition and Excise
Department, dated 9.11.2012 for the purpose of
strengthening the infrastructure capabilities to combat
illicit trafficking in Narcotic Drugs and Psychotropic
Substances in the State.
At the Conference of Collectors and Police
Officers, the Hon’ble Chief Minister of Tamil Nadu
announced that Rs.25 lakhs will be provided for
conducting the ‘Drug Buster’ awareness programme.
Plan of action for 2013-14
1. Training programmes will be organised
for Police personnel of NIB CID unit in
34
association with NCB for better
enforcement of NDPS Act.
2. More Awareness Programmes will be
conducted among the public and
students.
3. Intensive raids will be conducted in
Railway Stations, Bus Stands and near
Schools and Colleges.
4. More offenders will be detained under
Tamil Nadu Act 14/1982 Act in every
unit.
5. Intelligence on the activities of courier
agencies will be collected and action
taken.
6. Efforts will be redoubled to prevent the
cultivation of Green Ganja plants in
coordination with the Forest
department.
35
7. Transports of ganja from neighbouring
States by road and rail will be
effectively prevented.
8. The NDPS Act 1985 will be enforced
effectively in coordination with other
agencies enforcing the Act.
9. Raids will be conducted in Medical
Shops situated near Schools and
Colleges and other medical shops
against which complaints received
along with Drugs Inspectors, of the
Health department to eliminate the
sale of drugs near premises of
educational institutions.
Observing International Day Against Drug Abuse and Illicit Trafficking The International Day against Drug abuse and
Illicit trafficking is being observed on the 26th of June
every year. On this day, NIB CID and NCB Chennai
conduct awareness programmes, rallies and
processions about the evils of drug abuse. Further,
36
drawing competitions, marathons, rallies are also being
organised among school students to create awareness
about drug abuse.
Similarly, in all the Districts, the District
Collectors and the Superintendents of Police also
conduct awareness programmes with the help of
voluntary social organisations about the evils of drug
abuse and trafficking.
7. CONCLUSION The excise policy of Tamil Nadu is being admired
and attempted to be emulated in many States. The
decision to provide TASMAC with the privilege of retail
vending entirely, has ensured the prevention of leakage
of revenue, legitimately due to the State and the flow of
spurious liquor has been greatly curbed because of this.
Hooch tragedies have also not occurred for many years
now, thus preventing the loss of human lives.
The proliferation of local goondas, whose support was
taken by those persons running the liquor shops prior to
2003, has now become a thing of the past. Similarly
the scourge of drug addiction has been firmly checked
37
in the State and a vigorous awareness campaign is also
being pursued against the use of Narcotic and
Psychotropic Substances. The efforts of the
Government will continue in the same manner, not with
an intention to earn revenue but with a view towards
protecting the health and the well being of the people.
NATHAM R. VISWANATHAN
Minister for Electricity, Prohibition and Excise
38
ANNEXURE – I
Acts and Rules administered by the
Prohibition and Excise Department
1) The Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937)
2) The Tamil Nadu Molasses Control and Regulation Rules, 1958
3) The Tamil Nadu Denatured Spirit, Methyl Alcohol and Varnish (French Polish) Rules, 1959
4) The Tamil Nadu Disposal of Articles (Confiscated under the Tamil Nadu Prohibition Act) Rules, 1979
5) The Tamil Nadu Distillery Rules, 1981
6) The Tamil Nadu Indian Made Foreign Spirits (Manufacture) Rules, 1981
7) The Tamil Nadu Liquor (licence and Permit) Rules, 1981
8) The Tamil Nadu Liquor (Transit) Rules, 1982
9) The Tamil Nadu Liquor (Supply by Wholesale) Rules, 1983
10) The Tamil Nadu Liquor Retail Vending (in Shops and Bars), Rules, 2003
11) The Tamil Nadu Brewery Rules, 1983
39
12) The Tamil Nadu Prohibition Appeal and Revision Rules, 1983
13) The Tamil Nadu Chloral Hydrate Rules, 1984
14) The Tamil Nadu Mass Wine Rules, 1984
15) The Tamil Nadu Spirituous Preparations (Control) Rules, 1984
16) The Tamil Nadu Spirituous Preparations (Inter-State Trade and Commerce) Control Rules, 1985
17) The Tamil Nadu Narcotic Drugs Rules, 1985
18) The Tamil Nadu Liquor (Possession for Personal Consumption) Rules, 1996
19) The Tamil Nadu Rectified Spirit Rules, 2000
20) The Tamil Nadu Wine (Manufacture) Rules, 2006
Central Acts Administered by this Department
1) Medicinal and Toilet Preparation (Excise Duties) Act, 1955
2) Medicinal and Toilet Preparation (Excise Duties) Rules, 1956
3) Narcotic Drugs and Psychotropic Substances Act, 1985
4) Prevention of illicit Trafficking of Narcotic Drugs and Psychotropic Substances Act, 1988
40
ANNEXURE – II
Details of storage capacity and Production of
Molasses in the Sugar Mills in Tamil Nadu
Sl. No.
Name of the Sugar Mill
Permitted Storage Capacity (in MTs)
Actual Production (October 2011 –
September 2012)
(in MTs)
(1) (2) (3) (4)
Co-operative Sector
Thiruvalargal
1. Amaravathy Co-op. Sugar Mill, Tiruppur District
11000.000 7523.976
2. Madurantakam Co-op. Sugar Mill, Kancheepuram District
12000.000 3680.000
3. Tirutani Co-op. Sugar Mill, Tiruvallur District
14000.000 10629.950
4. Dharmapuri Co-op. Sugar Mill, Dharmapuri District
21400.000 13976.931
5. Subramaniya Siva Co.op. Sugar Mills, Dharmapuri District
12000.000 10631.930
6. National Co-op. Sugar Mill, Madurai District
17000.000 13010.925
7. Ambur Co-op. Sugar Mills, Vellore District
14500.000 6972.500
8. Tirupattur Co-op. Sugar Mill, Vellore District
17620.000 8290.020
9. Vellore Co-op. Sugar Mill, Vellore District
21000.000 10240.000
41
(1) (2) (3) (4)
10. Chengalrayan Co-op. Sugar Mill, Villupuram District
16000.000 16841.940
11. Kallakuruchi Co-op. Sugar Mill, Unit-I, Villupuram District
15000.000 17838.000
12. M.R.Krishnamoorthy Co-op. Sugar Mill, Cuddalore District
12000.000 12818.006
13. Kallakurichi Co-op.Sugar Mill Unit-II, Villupuram District
12000.000 20390.000
14. Salem Co-op.Sugar Mill, Namakkal District
19000.000 19747.190
15. N.P.K.R. Ramaswamy Co-op. Sugar Mill, Nagapattinam District
14000.000 7795.000
16. Cheyyar Co-op. Sugar Mill,
Tiruvannamalai District
12000.000 15700.000
Total 240520.000 196086.368
Public Sector
17. Madura Sugars, Madurai (not functioning)
6000.000 0.000
18. Arignar Anna Sugar Mill, Thanjavur District
16502.922 15428.435
19. Perambalur Sugar Mills, Perambalur District
12000.000 13114.200
Total 34502.922 28542.635
Private Sector
20. S.V.Sugar Mills, Kancheepuram District
29100.000 15036.141
21. Rajshree Sugars & Chemicals, Unit – I, Theni District
12000.000 28411.010
22. Dharani Sugars & Chemicals, Unit-I, Tirunelveli District
12600.000 18916.080
23. Sakthi Sugars, Unit-I, Sivaganga District
12000.000 32185.200
24. Bannari Amman Sugars, Unit-I, Erode District
12194.750 32237.728
42
(1) (2) (3) (4)
25. Sakthi Sugars Ltd., Unit-II, Erode District
19278.000 73243.420
26. Shree Ambika Sugars, Thanjavur District
24000.000 18926.000
27. EID Parry (India) Ltd., Cuddalore District
18600.000 88038.000
28. Rajshree Sugars & Chemicals, Unit -II, Villupuram District
13000.000 59257.344
29. Ponni Sugars & Chemicals,
Namakkal District
13755.000 32977.905
30. Thiru Arooran Sugar Mill, Unit-I, Cuddalore District
24000.000 32996.800
31. Thiru Arooran Sugar Mill, Unit - II, Thanjavur District
17333.725 24811.576
32. EID Parry (India) Ltd., Tiruchirapalli District
11000.000 45278.000
33. EID Parry (India) Ltd., Karur District
21773.000 60148.570
34. Kothari Sugars & Chemicals,
Tiruchirapalli District
10459.000 29731.720
35. Dharani Sugars and Chemicals Unit-II, Tiruvannamalai District
15000.000 42443.780
36. Shree Ambika Sugars, Cuddalore District
38000.000 48962.855
37. EID Parry (India) Ltd., Pudukkottai District
10000.000 42818.000
38. Arunachalam Sugars,
Thiruvannamalai District (Not functioning)
0.000 0.000
39. Kothari Sugars & Chemicals Ltd, Ariyalur District
16000.000 29940.000
40. Sakthi Sugars Unit-III, Erode District
4000.000 31899.700
41. Rajshree Sugars and Chemicals Unit-III, Villupuram District
5000.000 41264.500
43
(1) (2) (3) (4)
42. Dharani Sugars and Chemicals Unit-III, Villupuram District
13000.000 44086.520
43. Dhanalakshmi Srinivasan Sugars Private Limited, Perambalur District
12000.000 14976.715
44. Bannari Amman Sugars,
Thiruvannamalai District
6000.000 51720.337
45. Empee Sugars, Tirunelveli District
(not functioning)
20000.000 0.000
46. Madras Sugars, Villupuram District
5000.000 19570.380
Total 395093.475 959878.281
Grand Total 670116.397 1184507.284
44
ANNEXURE – III
Details of the Distilleries in Tamil Nadu
Sl. No.
Name of the Licensee
Permitted quantity of
daily production capacity of spirit (Kilo litre)
Permitted quantity of annual
production capacity of spirit (Kilo litre)
(1) (2) (3) (4)
Co-operative Sector
Thiruvalargal
1. Salem Co-operative Sugar Mills, Namakkal
55 16500
2. Amaravathi Co-operative Sugar Mills, Tiruppur
55 16500
Private Sector
3. Bannari Amman Sugars Limited, Erode
67.5 20250
4. Sakthi Sugars Limited, Erode
120 36000
5. E.I.D.Parry (India) Ltd., Cuddalore
75 22500
6. Trichy Distilleries & Chemicals Ltd., Trichy
60 18000
7. Southern Agrifurane Industries Limited, Villupuram
20 6000
45
(1) (2) (3) (4)
8. Mohan Breweries & Distilleries Ltd., Kancheepuram
62 18600
9. Chemplast Sanmar Ltd., Cuddalore
80 26400
10. Thiru. Arooran Sugar Mill, Thanjavur
60 19800
11. Kothari Sugars & Chemicals Ltd., Trichy
60 20700
12. Rajshree Sugars and Chemicals Ltd., Theni
45 13500
13. Dharani Sugars and Chemicals Ltd., Tirunelveli
60 18000
14. Bhavani Distilleries and Chemicals Ltd., Vellore
44 13200
15. Shree Ambika Sugars Ltd., Cuddalore District
70 21000
16. E.I.D.Parry (India)Limited, Sivagangai District
74 22200
17. S.V.Sugars, Kancheepuram District
100 30000
18. Rajashree Sugars and Chemicals Ltd, Villupuram District
80 24000
19. Dharani Sugars and Chemicals Ltd,
Villupuram District
100 30000
Total 1287.5 393150
46
ANNEXURE – IV
Details of Distilleries Licensed to Produce Ethanol
Sl. No.
Name of Distilleries
Permitted Quantity of
Daily Production Capacity of Ethanol (in Kilo Litres)
Co-operative Sector
Thiruvalargal
1. Tvl. Amaravathi Co-op. Sugar Mill
30
2. Tvl. Salem Co-op. Sugar Mill
30
Private Sector
3. Sakthi Sugars Limited 50
4. Rajshree Sugars and Chemicals Limited
45
5. Dharani Sugars and Chemicals Limited
30
6. Kothari Sugars and Chemicals Limited
30
7. E.I.D. Parry (India) Limited 45
8. Thiru Arooran Sugar Mill 60
Total 320
47
ANNEXURE – V
Details of Indian Made Foreign Liquor, Beer and Wine Manufacturing Units
Sl.
No.
Name of the Licensee Date of issue of licence
(1) (2) (3)
Indian Made Foreign Spirit Units
Thiruvalargal
1. Mohan Breweries and Distilleries Ltd., Thiruvallur
10.5.1982
2. Southern Agrifurane Industries (P) Ltd., Villupuram
10.2.1983
3. Shiva Distilleries Ltd., Coimbatore
25.5.1983
4. Empee Distilleries Ltd., Kancheepuram
29.9.1984
5. United Spirits Ltd., Thiruvallur 31.12.1984
6. Midas Golden Distilleries (P) Ltd., Kancheepuram
21.4.2003
7. Elite Distilleries (P) Ltd., Kancheepuram
27.9.2008
8. SNJ Distillers (P) Ltd., Kancheepuram
3.2.2009
9. Kals Distilleries (P) Ltd., Pudukottai
7.7.2009
10. Golden Vats (P) Ltd., Tiruvarur
29.12.2010
11. Imperial Spirit & Wine (P) Limited, Coimbatore
4.11.2011
48
Beer Units
1. Mohan Breweries and Distilleries Ltd.,
Thiruvallur
21.5.1984
2. Empee Breweries Ltd., Thiruvallur
12.2.1992
3. Chennai Breweries (P) Ltd., Thiruvallur
17.11.1995
4. SNJ Breweries (P) Ltd., Kancheepuram
11.1.2011
5. Kals Breweries (P) Limited, Pudukottai
8.12.2011
6. Appollo Distilleries (P) Ltd., Thiruvallur.
28.3.2012
Wine Unit
Cumbum Valley Winery Private Ltd., Theni
12.1.2010
49
50
51
Annexure – VII
Hierarchy of Narcotic Intelligence
Bureau CID
Dindigul
Theni
Villupuram
Thoothukudi
Vellore
Ramanathapuram
Coim
batore
Nagapattinam
Chennai
Trichy
Madurai
Salem
Kancheepuram
Sivagangai
Kanniyakumari
DIG., CB CID (SIT)
IGP., Crime (SIT)
ADGP., Crime
12-DSPs, NIB CID
ADSP, NIB CID
SP, NIB CID
49
Government Revenue for the period from 1996-97 to 2012-13
1646.961969.662719.31 3006.53
3373.563694.29
3807.453639.93
4872.036030.77
7473.61
8821.16
10601.50
12498.22
14965.42
18081.16
21680.67
0.00
5000.00
10000.00
15000.00
20000.00
25000.00
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
YEAR
Rupees in crores
ANNEXURE-VI
*Subject to reconciliation
*