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. 1. 2. Introduction Department of Prohibition and Excise Organisation and Functions Commissionerate of Prohibition and Excise Prohibition Enforcement Wing Tamil Nadu State Corporation Limited Marketing Subject Pages 1 2 2

3.

3 10

4. 5.

11 19 19 26 26 36 36 37 38 51

6. 7.

Narcotic Intelligence Bureau CID Conclusion Annexures I VII

HOME, PROHIBITION AND EXCISE DEPARTMENT Demand No.37 PROHIBITION AND EXCISE Policy Note 20132014

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

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. 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, 3

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.

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 5

Sector

and

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 GazetteExtraordinary, 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. 6

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 AnnexureIV. 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

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.

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 AnnexureV. 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. 1. 2. 3. 4. 5. Financial year 2008 2009 2009 - 2010 2010 2011 2011 2012 2012 2013 9 Special fee Rs.1.46 crores Rs.1.57 crores Rs.1.86 crores Rs.1.96 crores Rs.2.70 crores

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 selected through an open tender. company

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.

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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. 11

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. 12

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 201213, 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.

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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. 14

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.

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Liquor deaths in the last 10 years is detailed below:Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Liquor Deaths Incidents 2 2 2 0 2 0 0 0 0 0 Deaths 5 10 5 0 49 0 0 0 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, 16

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.

17

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:Amount allotted (Rs. in lakhs) 178.70 250.00 250.00 250.00 250.00 250.00 220.00 220.00 500.00 (Grant) 500.00 (Grant) 18 Number of beneficiaries 1390 2121 2022 1926 2004 1651 1569 1524 1898 1900

Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

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

19

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 Honble Minister for Electricity and Prohibition & Excise is the Chairman of TASMAC. Government, Home, The Principal Secretary to 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.

20

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. 21

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

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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

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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 24 for heading the

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.

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The details of Government revenue earned from the sale of liquor is given below:
Sl. No. Excise Revenue Sales Tax (Rs. in Crores) Total Growth (%)

Year

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

2003 04 2004 05 2005 06 2006 07 2007 08 2008 09 2009 10 2010 11 2011 12 2012 13
(Provisional)

1657.10 2549.00 3176.65 3986.41 4764.05 5755.42 6740.59 8115.90 9956.06 12125.31

1982.83 2323.03 2854.12 3487.20 4057.11 4846.08 5757.63 6849.52 8125.10 9555.36

3639.93 4872.03 6030.77 7473.61 8821.16 10601.50 12498.22 14965.42 18081.16 21680.67

-33.85 23.78 23.92 18.03 20.18 17.89 19.74 20.82 19.91

The graphical depiction of the revenue is indicated in AnnexureVI.

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, 26 Ramanathapuram,

Coimbatore,

Thoothukudi, Sivagangai

Vellore, and

Nagapattinam, Kanniyakumari.

Kancheepuram,

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 AnnexureVII.

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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.

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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, Narcotic import Drugs or or export any

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.

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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 30

extend to 1 times the maximum term of imprisonment and also be liable to fine which could extend to 1 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 Substances Drugs or or finances Psychotropic 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 31

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. 32

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 Honble 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 33

association

with

NCB

for

better

enforcement of NDPS Act. 2. More Awareness Programmes will be conducted among the 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 department. with the Forest public and

34

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, 35

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 36

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

37

ANNEXURE I Acts and Rules administered by the Prohibition and Excise Department 1) 2) 3) 4) The Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937) The Tamil Nadu Molasses Control and Regulation Rules, 1958 The Tamil Nadu Denatured Spirit, Methyl Alcohol and Varnish (French Polish) Rules, 1959 The Tamil Nadu Disposal of Articles (Confiscated under the Tamil Nadu Prohibition Act) Rules, 1979 The Tamil Nadu Distillery Rules, 1981 The Tamil Nadu Indian Made Foreign Spirits (Manufacture) Rules, 1981 The Tamil Nadu Liquor (licence and Permit) Rules, 1981 The Tamil Nadu Liquor (Transit) Rules, 1982 The Tamil Nadu Liquor (Supply by Wholesale) Rules, 1983 The Tamil Nadu Liquor Retail Vending (in Shops and Bars), Rules, 2003 The Tamil Nadu Brewery Rules, 1983 38

5) 6) 7) 8) 9) 10) 11)

12) 13) 14) 15) 16)

The Tamil Nadu Prohibition Appeal and Revision Rules, 1983 The Tamil Nadu Chloral Hydrate Rules, 1984 The Tamil Nadu Mass Wine Rules, 1984 The Tamil Nadu Spirituous Preparations (Control) Rules, 1984 The Tamil Nadu Spirituous Preparations (InterState Trade and Commerce) Control Rules, 1985 The Tamil Nadu Narcotic Drugs Rules, 1985 The Tamil Nadu Liquor (Possession for Personal Consumption) Rules, 1996 The Tamil Nadu Rectified Spirit Rules, 2000 The Tamil Nadu Wine (Manufacture) Rules, 2006 Central Acts Administered by this Department

17) 18) 19) 20)

1) 2) 3) 4)

Medicinal and Toilet Preparation (Excise Duties) Act, 1955 Medicinal and Toilet Preparation (Excise Duties) Rules, 1956 Narcotic Drugs and Psychotropic Substances Act, 1985 Prevention of illicit Trafficking of Narcotic Drugs and Psychotropic Substances Act, 1988 39

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) (3)

(1)

(2) Co-operative Sector Thiruvalargal

Actual Production (October 2011 September 2012) (in MTs) (4)

1. 2.

Amaravathy Co-op. Sugar Mill, Tiruppur District Madurantakam Co-op. Sugar Mill, Kancheepuram District Tirutani Co-op. Sugar Mill, Tiruvallur District Dharmapuri Co-op. Sugar Mill, Dharmapuri District Subramaniya Siva Co.op. Sugar Mills, Dharmapuri District National Co-op. Sugar Mill, Madurai District Ambur Co-op. Sugar Mills, Vellore District Tirupattur Co-op. Sugar Mill, Vellore District Vellore Co-op. Sugar Mill, Vellore District

11000.000 12000.000

7523.976 3680.000

3. 4. 5.

14000.000 21400.000 12000.000

10629.950 13976.931 10631.930

6. 7. 8. 9.

17000.000 14500.000 17620.000 21000.000

13010.925 6972.500 8290.020 10240.000

40

(1) 10. 11. 12. 13. 14. 15.

(2) Chengalrayan Co-op. Sugar Mill, Villupuram District Kallakuruchi Co-op. Sugar Mill, Unit-I, Villupuram District M.R.Krishnamoorthy Co-op. Sugar Mill, Cuddalore District Kallakurichi Co-op.Sugar Mill Unit-II, Villupuram District Salem Co-op.Sugar Mill, Namakkal District N.P.K.R. Ramaswamy Co-op. Sugar Mill, Nagapattinam District Cheyyar Co-op. Sugar Mill, Tiruvannamalai District Total Public Sector Madura Sugars, Madurai (not functioning) Arignar Anna Sugar Mill, Thanjavur District Perambalur Sugar Mills, Perambalur District Total Private Sector S.V.Sugar Mills, Kancheepuram District Rajshree Sugars & Chemicals, Unit I, Theni District Dharani Sugars & Chemicals, Unit-I, Tirunelveli District Sakthi Sugars, Unit-I, Sivaganga District Bannari Amman Sugars, Unit-I, Erode District

(3) 16000.000 15000.000 12000.000 12000.000 19000.000 14000.000

(4) 16841.940 17838.000 12818.006 20390.000 19747.190 7795.000

16.

12000.000 240520.000 6000.000 16502.922 12000.000 34502.922 29100.000 12000.000 12600.000 12000.000 12194.750

15700.000 196086.368 0.000 15428.435 13114.200 28542.635 15036.141 28411.010 18916.080 32185.200 32237.728

17. 18. 19.

20. 21. 22. 23. 24.

41

(1) 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.

39. 40. 41.

(2) Sakthi Sugars Ltd., Unit-II, Erode District Shree Ambika Sugars, Thanjavur District EID Parry (India) Ltd., Cuddalore District Rajshree Sugars & Chemicals, Unit -II, Villupuram District Ponni Sugars & Chemicals, Namakkal District Thiru Arooran Sugar Mill, Unit-I, Cuddalore District Thiru Arooran Sugar Mill, Unit - II, Thanjavur District EID Parry (India) Ltd., Tiruchirapalli District EID Parry (India) Ltd., Karur District Kothari Sugars & Chemicals, Tiruchirapalli District Dharani Sugars and Chemicals Unit-II, Tiruvannamalai District Shree Ambika Sugars, Cuddalore District EID Parry (India) Ltd., Pudukkottai District Arunachalam Sugars, Thiruvannamalai District (Not functioning) Kothari Sugars & Chemicals Ltd, Ariyalur District Sakthi Sugars Unit-III, Erode District Rajshree Sugars and Chemicals Unit-III, Villupuram District

(3) 19278.000 24000.000 18600.000 13000.000 13755.000 24000.000 17333.725 11000.000 21773.000 10459.000 15000.000 38000.000 10000.000 0.000

(4) 73243.420 18926.000 88038.000 59257.344 32977.905 32996.800 24811.576 45278.000 60148.570 29731.720 42443.780 48962.855 42818.000 0.000

16000.000 4000.000 5000.000

29940.000 31899.700 41264.500

42

(1) 42. 43.

44. 45.

46.

(2) Dharani Sugars and Chemicals Unit-III, Villupuram District Dhanalakshmi Srinivasan Sugars Private Limited, Perambalur District Bannari Amman Sugars, Thiruvannamalai District Empee Sugars, Tirunelveli District (not functioning) Madras Sugars, Villupuram District Total Grand Total

(3) 13000.000 12000.000

(4) 44086.520 14976.715

6000.000 20000.000

51720.337 0.000

5000.000 395093.475 670116.397

19570.380 959878.281 1184507.284

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ANNEXURE III

Details of the Distilleries in Tamil Nadu

Permitted Permitted quantity of quantity of daily annual production production capacity capacity of spirit of spirit (Kilo litre) (Kilo litre) (3) (4)

Sl. No.

Name of the Licensee

(1)

(2) Co-operative Sector Thiruvalargal

1. 2.

Salem Co-operative Sugar Mills, Namakkal Amaravathi Co-operative Sugar Mills, Tiruppur Private Sector Bannari Amman Sugars Limited, Erode Sakthi Sugars Limited, Erode E.I.D.Parry (India) Ltd., Cuddalore Trichy Distilleries & Chemicals Ltd., Trichy Southern Agrifurane Industries Limited, Villupuram

55 55

16500 16500

3. 4. 5. 6. 7.

67.5 120 75 60 20

20250 36000 22500 18000 6000

44

(1) 8.

(2) Mohan Breweries & Distilleries Ltd., Kancheepuram Chemplast Sanmar Ltd., Cuddalore Thiru. Arooran Sugar Mill, Thanjavur Kothari Sugars & Chemicals Ltd., Trichy Rajshree Sugars and Chemicals Ltd., Theni Dharani Sugars and Chemicals Ltd., Tirunelveli Bhavani Distilleries and Chemicals Ltd., Vellore Shree Ambika Sugars Ltd., Cuddalore District E.I.D.Parry (India)Limited, Sivagangai District S.V.Sugars, Kancheepuram District Rajashree Sugars and Chemicals Ltd, Villupuram District Dharani Sugars and Chemicals Ltd, Villupuram District Total

(3) 62

(4) 18600

9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

80 60 60 45 60 44 70 74 100 80

26400 19800 20700 13500 18000 13200 21000 22200 30000 24000

19.

100

30000

1287.5

393150

45

ANNEXURE IV Details of Distilleries Licensed to Produce Ethanol Permitted Quantity of Daily Production Capacity of Ethanol (in Kilo Litres)

Sl. No.

Name of Distilleries

Co-operative Sector Thiruvalargal 1. 2. Tvl. Amaravathi Co-op. Sugar Mill Tvl. Salem Co-op. Sugar Mill Private Sector 3. 4. 5. 6. 7. 8. Sakthi Sugars Limited Rajshree Sugars and Chemicals Limited Dharani Sugars and Chemicals Limited Kothari Sugars and Chemicals Limited E.I.D. Parry (India) Limited Thiru Arooran Sugar Mill Total 46 50 45 30 30 45 60 320 30 30

ANNEXURE V Details of Indian Made Foreign Liquor, Beer and Wine Manufacturing Units
Sl. No. (1) Thiruvalargal 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Mohan Breweries and Distilleries Ltd., Thiruvallur Southern Agrifurane Industries (P) Ltd., Villupuram Shiva Distilleries Ltd., Coimbatore Empee Distilleries Ltd., Kancheepuram United Spirits Ltd., Thiruvallur Midas Golden Distilleries (P) Ltd., Kancheepuram Elite Distilleries (P) Ltd., Kancheepuram SNJ Distillers (P) Ltd., Kancheepuram Kals Distilleries (P) Ltd., Pudukottai Golden Vats (P) Ltd., Tiruvarur Imperial Spirit & Wine (P) Limited, Coimbatore 10.5.1982 10.2.1983 25.5.1983 29.9.1984 31.12.1984 21.4.2003 27.9.2008 3.2.2009 7.7.2009 29.12.2010 4.11.2011 Name of the Licensee (2) Date of issue of licence (3)

Indian Made Foreign Spirit Units

47

Beer Units 1. Mohan Breweries and Distilleries Ltd., Thiruvallur Empee Breweries Ltd., Thiruvallur Chennai Breweries (P) Ltd., Thiruvallur SNJ Breweries (P) Ltd., Kancheepuram Kals Breweries (P) Limited, Pudukottai Appollo Distilleries (P) Ltd., Thiruvallur. Wine Unit Cumbum Valley Winery Private Ltd., Theni 12.1.2010 21.5.1984

2. 3. 4. 5. 6.

12.2.1992 17.11.1995 11.1.2011 8.12.2011 28.3.2012

48

49

50

Annexure VII Hierarchy of Narcotic Intelligence Bureau CID

ADGP., Crime IGP., Crime (SIT) DIG., CB CID (SIT) SP, NIB CID ADSP, NIB CID 12-DSPs, NIB CID

Ramanathapuram

Kancheepuram

51

Kanniyakumari

Nagapattinam

Thoothukudi

Coimbatore

Sivagangai

Villupuram

Dindigul

Chennai

Madurai

Vellore

Trichy

Salem

Theni

ANNEXURE-VI
Government Revenue for the period from 1996-97 to 2012-13
25000.00

21680.67
20000.00

18081.16

Rupees in crores

14965.42
15000.00

12498.22 10601.50
10000.00

8821.16 7473.61 6030.77 4872.03 3807.45 3639.93 3694.29

5000.00

2719.31 3006.53 1646.961969.66

0.00

3373.56

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

*Subject to reconciliation

49