Published Jun 12, 2026 | 10:15 AM ⚊ Updated Jun 12, 2026 | 10:15 AM
Alcohol. Representative Image. (iStock)
Synopsis: The Union government repealed the 47-year-old liquor prohibition law in Lakshadweep and introduced a new excise framework through the Lakshadweep Excise Regulation, 2026. Under the new policy, the import, export, transport, manufacture, possession and sale of liquor will be regulated rather than prohibited.
The Union government has repealed the 47-year-old liquor prohibition law in Lakshadweep and introduced a new excise framework through the Lakshadweep Excise Regulation, 2026.
Issued by the President under Article 240 of the Constitution and published in the Gazette of India on Friday, 12 June, the new regulation replaces the Lakshadweep Prohibition Regulation, 1979, which had enforced a near-total ban on alcohol for decades.
Under the new policy, the import, export, transport, manufacture, possession and sale of liquor will be regulated rather than prohibited. Alcohol will be permitted only in approved hospitality establishments, luxury beach resorts, international cruise vessels and designated tourism zones.
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The regulation specifically prohibits retail liquor outlets in residential town centres and non-tourist settlement areas, ensuring that alcohol availability remains largely confined to tourism-related locations.
An Excise Commissioner will be appointed to oversee licensing, enforcement and compliance. At the same time, stricter monitoring systems and checkpoints will be established at ports and maritime transit points to prevent unauthorised movement of liquor.
The regulation also prescribes penalties, including fines and imprisonment, for the illegal manufacture, possession, transport or sale of liquor.
According to the Gazette notification, the decades-old prohibition regime was reviewed in view of changing socio-economic conditions and the growing importance of tourism in the Union Territory.
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The Lakshadweep Excise Regulation came into force on Friday. However, objections submitted during the public consultation process in 2023 appear to have remained unaddressed, with no hearing on record before the regulation was promulgated.
In a written objection filed in response to the draft regulation, Lakshadweep resident Attakoya MI urged the Administration to withdraw the proposal, arguing that the islands’ predominantly Scheduled Tribe population traditionally opposes alcohol consumption and that prohibition had helped preserve public health, social harmony and low crime rates.
The objection cited constitutional provisions, health risks associated with alcohol, concerns over environmental impacts from proposed distilleries and wineries and claimed the proposal was not placed before elected local bodies.
It also argued that Lakshadweep’s tourism policy focused on environmentally sustainable and culturally acceptable development without provision for alcohol.
Despite these objections, the regulation has now been notified and brought into force, with no indication that a hearing was conducted on the representations received during the consultation process.
(With inputs from Sreelakshmi Soman.)
