Decode politics: What prompted BJP Gujarat govt to tweak 63-yr-old prohibition law

So what prompted the state government to relax the 63-year-old law, and what would its implications be on Gujarat’s politics and industry:

What is the BJP’s argument?

The move is a marked shift for the state, which has always drawn pride in its prohibition laws. The BJP, which has been ruling the state since 1995 (with a brief period that saw a breakaway faction led by Shankersinh Vaghela in power), seems to have realised that a “dry state” is a likely hurdle in the global space sought by the state via seeking investments and development of tourist destinations like GIFT City, Dholera, the Statue of Unity and the Kutch Rann Utsav.

“The (prohibition) law is too stringent. Look at the amount of todbaazi (illegal deals) on the outskirts (for those found drunk). If people drink normally, there is no harm. We need to educate them,” a senior BJP leader with RSS roots told The Indian Express.

The leader also said the exemption will serve as a “trial run” for future decisions, which may be applicable in the entire state.

In the first official reaction, state minister and government spokesperson Rushikesh Patel said the move resulted in the “removal of few hurdles and limitations”.

“I believe this move will encourage people from across the country and abroad to take note of business opportunities in Gujarat… This is an effort to let people maintain their social life and lifestyle. GIFT City is on its way to becoming a major hub of economic activity for the country. We need to match the lifestyle of those arriving from outside the state,” Patel had said on Saturday.

Why is the Opposition up in arms?

Even as the Congress and Aam Aadmi Party (AAP) have slammed the state government for the move, former CM Shankersinh Vaghela congratulated the government for its “courage” to take the decision.

Gujarat Congress chief and Rajya Sabha MP Shaktisinh Gohil lashed out at the government for “lifting the law through backdoor means” in a land known for Mahatma Gandhi. “Gujarat was safe due to the law and girls could go out for late night garbas even at 2 am,” he said.

AAP state chief Isudan Gadhvi termed the move an “insult to all Gujaratis” and warned of an agitation if the move was not revoked. He too invoked Gandhi and said it was on the Mahatma’s “recommendation” that the state had imposed the law.

Vaghela, who has been vocally against the law in its existing form, said “Gandhi’s stamp should not be used to enforce it”.

Not the first time

Friday’s relaxation is not the first time that the state government has relaxed the law. Ahead of the VGGS in 2007, the then Modi-led Gujarat government had issued a notification introducing group liquor permits “to educational and commercial” enterprises to conduct conferences and seminars in the state. Another similar notification allowed hotels to issue visitors and tourists drinking permits.

As the state prepared to host the seventh edition of the VGGS and the Pravasi Bharatiya Divas in 2014, the state government allowed hotel managers and authorised liquor shops to issue permits to anyone, irrespective of whether they had checked into a hotel or not. Online permits were also introduced. Currently, the drinking permit for foreigners continues to be free of charge. The oldest permit to drink in Gujarat is a “health permit” issued to those above 40 years of age.

How does this impact the industry?

Industry leaders have said they need to keep up with the times and not “close our eyes to reality” given the changing nature of the state.

Those involved in the hospitality sector argue that the state has lost out on business due to the harsh prohibition law. In 2020, Radhikharaje Gaekwad from the Vadodara royal family had said, “Gujarat is a prosperous state and we have very beautiful palaces with different architecture, so it can very much be a part of the (tourism) circle, but it is a dry state due to prohibition. One doesn’t imagine luxury travellers, destination weddings or foreign travellers coming here because they want to have a glass of wine in their hand, sit and enjoy. We feel that it is a deterrent; many in the royal families feel that way.”

Recently, a Mumbai diamond businessman, Chintan Jivani, had told The Indian Express ahead of the opening of the Surat Diamond Bourse (SDB) by Modi that if business had to be shifted from Mumbai to Surat, “prohibition would have to be relaxed” apart from the need for seven-star hotels.

Industry sources said GIFT City had proposed the opening of wine and dine facilities following representations from business quarters.

“You can give any amount of tax exemptions in the International Financial Services Centre (IFSC) area to do business but without a social infrastructure it would not attract talent to relocate from a region where drinking was allowed,” says a law consultant.

The GIFT City was recently expanded to 3,300 acres with a 261 acre area demarcated as an SEZ, where domestic tax laws do not apply. It is run by the Gujarat International Finance Tech-City Company Ltd. whose board of directors has top Gujarat bureaucrats.

Diplomats have raised concerns about the area becoming a “ghost town” after sunset. “After a hard day’s work in a place like that you want to come home and settle down to a nice drink, or watch a game of football, neither of which is available here,” a diplomat had told this paper.

Challenges in implementation

The biggest challenge facing the Gujarat Police will be to ensure those leaving GIFT City after consuming alcohol are not harassed, an officer said.

The police are waiting for the official notification that would put the new law into effect and will then draw up a Standard Operating Procedure (SOP).

Patel on Saturday said those authorised by the companies to consume liquor inside GIFT city will be given a “card” to exclude them from the prohibition law outside of the area. “One won’t be able to drink and drive, but a permit will have to be issued to such individuals,” said another officer.