Madhya Pradesh denies excise licence renewal to Som Distilleries on regulatory grounds

The Madhya Pradesh government has rejected the applications of Som Distilleries Group units for renewal of excise licences for 2026-27, citing allegations of illegal liquor transportation, use of forged permits, revenue loss, and violations of excise regulations. The decision was announced by the state Excise Department on Thursday.

According to an order issued by the Excise Commissioner, licence renewal is not an automatic right and requires a thorough review of an applicant's conduct, compliance history, and adherence to the Madhya Pradesh Excise Act, 1915 and related rules. Officials stated that the review considered court records, inquiry reports, documentary evidence, and previous cases involving the group.

The government said the decision reflects its commitment to transparency and rule-based governance. “No individual, institution or establishment is above the law in Madhya Pradesh,” a government official said, adding that compliant industries would continue to receive support while action would be taken against violators.

Som Distilleries and Breweries Ltd., headquartered in Bhopal, is one of central India's largest liquor manufacturers, with distillery, brewery, and bottling facilities. It is listed on Indian stock exchanges and markets beer and Indian Made Foreign Liquor (IMFL) brands across multiple states. The company had not publicly responded to the government's decision.

The action follows a March 23 judgment by the Madhya Pradesh High Court, which upheld the suspension of eight excise licences held by Som Distilleries and its group entities. Justice Vivek Agarwal observed that the liquor business is not a fundamental right and that the state's decision was within the framework of the Excise Act and rules. The suspension had been ordered on February 4, 2025, after criminal convictions in a case related to illegal liquor transportation.

According to court records, the case stems from a 2011 incident in which a truck carrying approximately 1,200 boxes of foreign liquor was intercepted on the Mhow-Neemuch road. Investigators found that the consignment was allegedly transported using forged transit permits, resulting in a loss of excise revenue. A trial court later returned convictions in the matter, leading to the show-cause notice and subsequent licence suspension.

The government's action underscores its regulatory stance under Chief Minister Mohan Yadav's administration, which has emphasised zero tolerance for illegal activities. However, the decision was based on legal and procedural grounds rather than political considerations, officials said.