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

*