Liquor Prohibition: Patna High Court Reprimands Income Tax Department For Not Confiscating Liquor Syndicate's Property

The Bench was hearing the anticipatory bail plea of one Gangaram. The matter relates to a police case involving recovery of 4,800 litres of IMFL at Badlapur Bagicha, Matihani police station in Begusarai district.

The court ordered the Income Tax Department to investigate and submit a report against the liquor syndicate within three weeks.

Along with this, the court directed,

"The Income Tax Department should get the details from the Police and thereafter investigate the illegally acquired wealth by the members of the liquor syndicate, who have themselves made confession that they have acquired property/cash from their business of illicit liquor."

Earlier, the court had directed the Income Tax Department to probe into the illegal assets amassed by such smugglers and submit a report before the court.

Public Prosecutor Ajay submitted that the state police had investigated the liquor syndicate. The investigation has full details of people from Bihar to Punjab and Haryana, but action is not being taken on this report. The counsel for the parties submitted that counter affidavit of the Income Tax Department is perfunctory.

It appears that the Income Tax Department has not conducted any investigation in the matter of illegally acquired wealth by the members of the liquor syndicate, the Court noted.

Previously, the court had directed the ED to register a case against the big liquor syndicate and take action against them. On failure to do so, its Joint Director was summoned. Accordingly, the agency's counsel Poonam Singh informed the Court that ECIR has been registered and they are proceeding with the matter.

Advocate Braj Bhushan Poddar appeared for the petitioner. Additional Solicitor General KN Singh appeared on behalf of the Central Government and Advocate Punam Kumari Singh appeared for the ED.

Liquor ban law in Bihar

Recently, the Liquor Prohibition Amendment Bill was passed in the Bihar Legislative Assembly. Liquor ban came into force in Bihar in April 2016.

The biggest change in the prohibition law is that now those caught after drinking alcohol for the first time will not have to go to jail. The Magistrate can release them with a fine failing which. In case of non-payment, there is a provision for imprisonment.

Also Read: Bihar To Amend Liquor Prohibition Law After Supreme Court's Concerns About Surge In Arrests & Bail Pleas

Case Title: Ganga Ram Vs State of Bihar