New Delhi (PTI): In an 8:1 majority ruling, the Supreme Court on Wednesday overturned a seven-judge bench verdict and held that states have regulatory power over production, manufacture and supply of industrial alcohol.

In 1997, the seven-judge bench ruled that the Centre had the regulatory power over the production of industrial alcohol. The case was referred to the nine-judge bench in 2010.

Chief Justice D Y Chandrachud, who wrote the latest judgement for himself and seven other judges, said the Centre lacks the regulatory power.

Justice B V Nagarathna on the nine-judge SC bench dissented with the majority verdict.

Industrial alcohol is not meant for human consumption.

While Entry 8 in the State List under the 7th Schedule of the Constitution gives the states the power to legislate on the manufacture, possession, transport, purchase and sale of "intoxicating liquors", Entry 52 of the Union List and Entry 33 of the Concurrent List mention industries whose control was "declared by Parliament by law to be expedient in public interest".

While both parliament and state legislatures can enact laws on the subjects mentioned in the Concurrent List, a central law will have primacy over the state law.

The nine-judge Constitution bench was hearing a batch of petitions after a seven-judge Constitution bench ruled against the state governments.

 

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Hyderabad, Nov 25: Telangana Chief Minister A Revanth Reddy on Monday announced that the state government will not accept the Rs 100 crore CSR donation committed by industrialist Gautam Adani for the Young India Skills University being set up in the state.

The CM's announcement came days after the indictment of the Adani Group chairman in a US court.

In a letter to Priti Adani, Chairperson of the Adani Foundation, the state government's Special Chief Secretary (Industries) Jayesh Ranjan said he has been "instructed by the chief minister not to seek the transfer of funds in view of the present circumstances and arising controversies".

While thanking Priti Adani for committing Rs 100 crore to the skills university, the official said the state government has so far not asked any of the donors for physical transfer of funds since the university had not received the IT exemption under Section 80 G. However, the IT exemption order has now been received recently.

Addressing a press conference here, Revanth Reddy said the decision was taken as the Congress government does not want to find itself in any unwarranted controversy amid the allegations against the Adani Group.

He said so far the Telangana government has not accepted a single rupee into its account from any organisation, including Adani Group, for the skills university being established to promote employment avenues for youth.

"I and my Cabinet colleagues do not want to be involved in unnecessary discussions and situations that would dent Telangana's image or my own," Reddy said.

Gautam Adani met the chief minister here on Octrober 18 and symbolically handed over a cheque for Rs 100 crore towards donation to the skills university.

Asked about the comments of BRS that the government should cancel the Adani Group's investment proposals in the state, Reddy said the government will have to take legal opinion for cancellation of any agreements as the other party can go to courts against unilateral termination of pacts.

On BRS working president K T Rama Rao's comments that the previous BRS regime did not allow Adani Group into the state, Reddy displayed photographs of former CM K Chandrasekhar Rao and Rama Rao with Gautam Adani to the mediapersons.

He also read out a list of Adani Group's investment proposals reportedly approved by the BRS government.

"Is he (Rama Rao) ready for a probe on these," Reddy asked.

When pointed out that the state government discussed investment proposals with the Adani Group though Congress leader Rahul Gandhi has been raising questions on Adani for several years now, he said Congress is not against any investment proposal or corporate house but crony capitalism and violation of rules.

It is his responsibility to follow his leader when the latter is raising his voice on an issue, Reddy said.