Nilanjan Mukhopadhyay

Gujarat’s GIFT City: Liquor permit, a pragmatic move to break shackles of old laws


Gujarat’s GIFT City: Liquor permit, a pragmatic move to break shackles of old laws
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The new regulations do not permit sale of liquor bottles, but alcoholic drinks can be served to regular employees of GIFT City and authorised visitors. Representative photo: iStock

The move to lift liquor ban from GIFT city is a bold move ahead of the Lok Sabha polls and projects PM Modi as a leader who is not chained to old laws and customs but is instead willing to experiment on ‘trial’ basis

The Gujarat government's decision last week, to provide “global business ecosystem” at the Gujarat International Finance Tec-City (GIFT City) by lifting prohibition within a ‘dry state’, has exhumed decades-old memories centered on an issue considered taboo in the state.

It was the summer of 1992 and journalists from across India were gathered in Gandhinagar along with the BJP’s top brass for its national executive meeting. The urban agglomerate was still a disconnected outgrowth of the better-known Ahmedabad despite being the state’s capital for two decades.

The government functioned from under-construction office buildings and post sundown a few remained in the yet emerging city which then took a ghostly look. A few poorly lit streets connected odd residential localities and spaced-out markets with monotonous layout.

Even before becoming the second-largest party in Lok Sabha following after the 1991 parliamentary polls, the BJP had realised the value of making its meetings more accessible for the media. With its new-found status in Parliament opening new avenues to resources, the BJP had begun playing the ‘caring’ host at venues of NE deliberations.

For this one in Gandhinagar, the party chartered AC railway coaches to ferry delegates and the media from the national capital to Ahmedabad. They were thereafter taken in waiting air-conditioned (considered a luxury at that time) buses to allotted destinations – journalists to the only comfortable hotel and delegates to the hastily laid-out camp replete with compact tents, toilets, snack counters and dining halls.

Dedicated teams of volunteers looked after various needs of the assembled scribes, from meals to vehicles to reach the meeting venue. A conference room functioned as the communication centre with computers, printers besides telex machines and fax lines – internet was beyond comprehension back then.

Permit request and evening drinks

We had barely checked in and assembled to head to the party shivir site, that a small group of volunteers began getting some printed forms in Gujarati signed by some of us. On enquiring what these forms were for, “permit request”, was the answer. The quizzical look on the face of those visiting Gujarat for the first time fetched a slightly more detailed explanation – “for evening…drinks ke liye.

More explanation came from journalists who ‘knew’ Gujarat’s ways. They detailed that these secured liquor permits for travelers from outside Gujarat. It was explained that permits were issued on ‘health’ grounds. Securing these was evidently not problematic because a well-oiled supply chain existed.

Enough permits were secured that day to ensure that not just Bacchus-liking visiting journalists, but even the desirous among senior volunteers and party functionaries, could discretely spread out in various rooms after the day’s work was over.

It was a merry lot which sauntered into the restaurant where a lavish buffet awaited them. Although he was not involved with such nuts and bolts of operations, a certain BJP leader who later went places, was a prominent state leader at that time. The entire event bore his stamp, first displayed during Murli Manohar Joshi’s Ekta Yatra.

Getting liquor a cakewalk

The form-filling became a regular routine on most subsequent visits to Gujarat: check-in, sign the form available with the hotel staff and after a short while, the permit would be delivered by room service. Acquiring liquor bottle(s) too was simple – often, shops were located within the hotel premises.

In decades since then, one also came face-to-face with the vast illegal liquor network across Gujarat. As communication facilities improved, especially after the advent of mobile telephony, one became aware of the ‘home delivery’ system.

Many travelers to the state not just heard, but also experienced how guzzlers from Gujarat flocked to Daman and Diu, especially on weekends, to literally take several dips in innumerable watering holes. Holiday over, they returned straight-faced to ‘dry’ Gujarat.

Modi’s take on prohibition then and now

It was knowledge of this hypocrisy that gave me the courage on one occasion to toss a question to Prime Minister Narendra Modi when he was still chief minister of the state, and I was interviewing him while writing his biography. It eventually became a short section – me probing and Modi replying tersely:

Me: After so many years what purpose does Gujarat’s prohibition policy serve, and would you consider reviewing it? Is it not a hypocritical policy, as attitude towards alcohol is different among large sections of society from before?

Modi: This is a part of the value of life – and not insincere. There is commitment towards the policy – of Gujarat government, of the people, the mothers and sisters. And I think Gujarat is on the right track on this.

Me: We keep reading about a huge parallel economy in alcohol. Do you think there will be ever any review of this in the coming times?

Modi: There must be a review to remove deficiencies.

Me: What about lifting prohibition?

Modi: I don’t think at all.

Me: Any specific reasons for this?

Modi: It is a part of the values of Gujarat.

Modi’s assertion more than a decade ago stands in contrast to the state prohibition department’s recent decision that “allows ‘wine and dine’ facilities in the GIFT City area to provide a global business ecosystem to global investors, technical experts and national and international companies.

“Under the new system, hotels, restaurants and clubs (existing and that will come up) in the GIFT City area will be given permits,” reads the statement.

Who broke the taboo?

Given Modi’s centralised governance style, the decision on breaking the taboo could not have been taken without clearance from ‘above’. This is particularly so because the GIFT City project was conceptualised by Modi in 2007 and continues being projected as prime destination for global investment.

Although the state remains under the archaic prohibition law in force from the time Gujarat was part of the united Bombay State, the relaxation for GIFT City is indicative of administrative pragmatism. The new regulations do not permit sale of liquor bottles, but alcoholic drinks can be served to regular employees of GIFT City and authorised visitors.

This is certainly a bold move in run-up to the Lok Sabha elections and projects the image of Modi as a leader who is not chained to old laws and customs but is instead willing to experiment on ‘trial’ basis. This is not the person who in 2012 defended prohibition, even though it was rumoured that he was initially in favour of relaxing the law.

Eye on Vibrant Gujarat Global Summit

Moreover, the Vibrant Gujarat Global Summit 2024 is being held in the state capital on January 10-12 after a gap of four years. Many among assembled delegates will in all likelihood drive over to GIFT City to experience ‘liberalised’ festivities.

The decision to permit limited public drinking in Gujarat is possibly the government’s move to attract greater response to the only International Financial Services Centre in the country. The absence of local human resource coupled with unwillingness of skilled workers to move to GIFT City is considered to be the reason why the sprawl resembles a ghost town after office hours.

It is early to state if the decision on GIFT City is a precursor to accepting long-standing demand of the tourism and hospitality industry to relax the prohibition law, if not across the state in one step, but in a calibrated manner. Most political leaders across parties remain critical of prohibition personally, in Gujarat or Bihar, but rarely back the industry’s demand in public for fear of protests by women, certain communities and social organisations.

Alcoholism certainly is a major social and health problem but banning alcohol is hardly a solution. By moving ahead with a decision that has been opposed by the two principal opposition parties – Congress and Aam Aadmi Party, the Modi regime provided indication of greater confidence in the run-up to the parliamentary polls.

Time will determine if this is a precursor to further relaxations for the hospitality sector and giving a greater push to the domestic alcohol industry. The decision also raises questions on the belief that availability of alcohol is one of the essential to attract investment and talent to enable growth of businesses. But that is a subject for examination on another occasion.

(The Federal seeks to present views and opinions from all sides of the spectrum. The information, ideas or opinions in the articles are of the author and do not necessarily reflect the views of The Federal.)

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