Rampant Illegal Liquor Shops Flourish in Odisha Despite Court Bans

Despite explicit directives from the Supreme Court and the Odisha High Court prohibiting the operation of liquor shops near highways, schools, colleges, and public places, hundreds of such establishments continue to function illegally across the state. The growing defiance reflects a deep-rooted nexus between officials and the liquor lobby, resulting in widespread violations and significant revenue losses.

Court Orders Ignored: Liquor Shops Still Near Highways and Public Areas

In the landmark 2016 State of Tamil Nadu & Ors. v. K. Balu & Anr. verdict, the Supreme Court mandated the closure of liquor vends within 500 meters of National and State Highways. Many shops were shut down following this directive.

However, in 2017, the court modified the ruling in the Arrive Safe Society case, relaxing the distance restriction for liquor outlets located within municipal limits and allowing states to take their own call.
Despite this flexibility, Odisha has allegedly failed to act, allowing violators to flourish in blatant disregard of the law.

Odisha Government’s Inaction Fuels Violations

The Odisha government’s apparent indifference has enabled numerous illegal liquor shops to operate unchecked. Had the rulings been implemented effectively, the influence of the liquor mafia—particularly along busy highway stretches—may have been drastically reduced.

Instead, no substantial action has been taken by the authorities, indicating a systemic unwillingness to enforce judicial orders.

No New Excise Policy Since 2023: OSBC Suffers Massive Losses

Another major concern is the excise department’s failure to introduce a new excise policy for three consecutive years.
As a result, the Odisha State Beverage Corporation (OSBC) has continued under outdated regulations, leading to massive financial losses.

Revenue Loss of ₹400 Crore

With liquor prices unchanged since 2023 and no policy revisions, it is estimated that the state has forfeited nearly ₹400 crore in potential revenue. This stagnation has also contributed to the rising circulation of adulterated liquor, posing severe public health risks.

Alleged Collusion Between Officials and Liquor Companies

The delay in finalising the excise policy is widely attributed to alleged collusion involving excise officials, OSBC functionaries, and liquor companies.
This nexus has created a policy deadlock, benefiting illegal operators and undermining government revenues.

Outdated regulations have further enabled the mushrooming of unauthorized liquor outlets, many of which operate dangerously close to educational institutions.

Illegal Liquor Shops Thrive Even in Bhubaneswar

Illegal and unauthorized liquor shops are visible even in the state capital. Areas such as:

• Baramunda

• Khandagiri Square

• Jatni Gate

• Talakheta Square

continue to witness illegal operations in broad daylight.

Licensed wine shops have also reportedly been shifted to unauthorized locations, openly flouting norms. Shop owners allegedly use bribes to ensure that excise officials remain silent spectators.

Corruption, Mafia Nexus Weakens Enforcement

The flourishing illegal trade exposes a deeply entrenched system of corruption within the excise department. Officials turning a blind eye to violations has emboldened shop owners and liquor mafia groups, rendering court orders virtually powerless.

The lack of accountability raises serious concerns about governance and public safety.

Who Will Act? A Call for Urgent Intervention

With the excise department, liquor companies, and the liquor mafia seemingly operating hand-in-hand, the responsibility to curb widespread illegal activity remains unclear.

Unless the state government initiates urgent corrective measures, the situation will continue to deteriorate—compromising law enforcement, public health, and state revenue.