Maharashtra excise department busts racket involved in duplicating beer brands

In a rare case, the state excise department has unearthed a racket that smuggled in low-priced beer from nearby Silvassa, replaced the labels and caps on bottles and sold this duplicate brew at a premium by passing it off as being meant for sale in Maharashtra. While duplication of Indian Made Foreign Liquor (IMFL) like whiskey and white spirits is common, officials said this was the first time in recent years that a nexus involved in duplicating beer brands was busted.

State excise officials are also investigating if the beer was mixed with additives to increase profit margins.

Maharashtra follows a policy of discouraging liquor consumption through high prices and low sales and has one of the highest excise duty regimes in India. The difference in prices with neighbouring states and union territories ensures a killing for smugglers and bootleggers.

Subhash Jadhav, inspector, state excise flying squad, Palghar and Thane, said based on a tip-off, they intercepted a tempo on Sunday at the Charoti check post at Dahanu in Palghar district and found a stash of 105 boxes of beer (80 boxes) and whiskey (25 boxes) that were manufactured in Daman for sale in the union territory of Dadra and Nagar Haveli. This was hidden behind a cargo of vegetables in the vehicle.

An accused in this bootlegging demonstrates how they removed the caps of beer bottles smuggled in from Silvassa and replaced them with those meant for sale in Maharashtra. Such rackets involved in duplicating beer brands are quite rare @dna pic.twitter.com/LOLYS038hg

— Dhaval Kulkarni (@dhavalkulkarni) August 13, 2018

"At a location near Virar Phata, beer bottles were immersed in water to remove the labels. The caps were removed and replaced with other caps having Maharashtra markings using a machine. This was because these caps and labels have markings saying they are meant for sale in a particular state. The labels were colour photocopies of brands meant for sale in Maharashtra," said Jadhav.

He added that these duplicate beer bottles were sold to retailers like permit rooms, orchestra bars and beer shopees. Similarly, the whiskey bottles were also duplicated for sale at a higher price.

Jadhav said while the beer was purchased for as low as Rs 45 and 60 per bottle in Daman, it was sold at a much higher price in Maharashtra, ensuring windfall gains for those in the network. In Maharashtra, retail prices of beer start from around Rs 120 for mild beer and Rs 140 for strong beer, depending on the brands.

The investigations will also look into whether the beer was laced with additives and the parties to whom these bottles were sold. Excise officials are on the lookout for the kingpins.

Admitting this was a rare case, Jadhav said it was believed that beer was difficult to duplicate as opening a bottle would lead to the carbon dioxide being expelled and hence, these bootleggers changed the caps when the bottles were warm or at room temperature.

The total value of the seizure, including the liquor, bottling machine and two tempos, is Rs 15,39,400 and two people have been arrested.

In November 2014, state excise officials had busted an illegal beer manufacturing unit at Talasari in Palghar district where cheap beer and soda were mixed. This beer was not sold at shops but delivered at home to buyers.

OTHER DETAILS

• Excise Dept officials are on the lookout for the kingpins in this case
   
• In Nov 2014, excise officials had busted an illegal beer manufacturing unit at Talasari in Palghar, where cheap beer and soda were mixed. This beer was delivered to homes