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July 26, 1999

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Swadeshi Jagran Manch wants Centre to control liquor industry

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The Swadeshi Jagran Manch is seeking to ensure that control with regard to production and distribution of liquor remains with the Centre instead of being shifted to the states.

Any move to shift control of production of potable alcohol will enable multinational corporations to ''crowd the limited market,'' edging out the small players, as it will be easier for foreign companies to get approval from the state governments, the SJM functionaries said.

The SJM said that such a move was in offing as the industry ministry had sought views of the attorney general in the case whose observations are in favour of shifting control from the Centre to the states.

In a letter to Industry Minister Sikander Bakht, the SJM said that this was in spite of the fact that the Cabinet had taken a decision to await the verdict of the constitution bench of the Supreme Court on the judgement in the Bihar distillery case of 1997, which would enable giving licences for the manufacture of liquor to the state government.

The SJM said it has been given to understand that the attorney general has expressed the view that pending the verdict of the constitution bench, there is no problem in the government implementing the 1997 judgement of the apex court. He has also observed that all cases under consideration of the Foreign Investment Promotion Board could be considered and disposed off.

''Without going into the merits of his opinion expressed in this regard, we would like to record that implementation of his suggestions will have far-reaching consequences. MNCs are awaiting with bated breath to get approvals from the state governments once the government announces the decision to open up licences for liquor.''

The letter said MNCs are bound to take advantage of this position and even if later on licensing is reintroduced pursuant to the judgement of the constitutional bench, such MNCs will be protected by law. They will also approach the government for foreign direct investment which cannot be easily denied by the government.

Apart from this, there is another important aspect which is not taken care of by the ministry. This relates to the fact that the government itself at the Cabinet level postponed the decision. "We do not understand how ministry of industry could arrogate itself to take a view agreeing with the views of the attorney general in a matter of such serious dimensions,'' the SJM said in the letter.

Claiming that the SJM has been spearheading the movements against MNCs, particularly in the liquor and tobacco industries, the Sangh Parivar organisation asked the ministry to await the decision of the constitution bench.

In similar letters sent to various ministries, including the finance ministry, the SJM asked the government to maintain the status quo in the issue.

UNI

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