Amid rising concerns over illegal liquor rackets operating across Punjab, the state government has initiated a major crackdown to plug revenue leakage and curb the increasing influence of the liquor mafia. Senior officials revealed that several high-level meetings have been held to review irregularities, particularly in border districts and major urban centers.
Sources within the Excise Department confirmed that the government is troubled by reports suggesting the involvement of influential businessmen and politically-backed networks in the smuggling of liquor from neighboring states. These networks allegedly exploit price differences between states, manipulate transport permits, and supply unlicensed liquor to dhabas, hotels, and rural markets.
Officials said the government is preparing to introduce sweeping reforms such as:
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Mandatory digital tracking of every liquor bottle
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AI-based monitoring of wholesale depots
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Biometric authentication at liquor vends
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New toll naka checks to prevent inter-state smuggling
The crackdown comes at a time when Punjab is already battling the rise of drug addiction and illegal substances. Experts warn that unchecked access to cheap illegal liquor can further fuel crime, domestic violence, and major health risks, including deaths from spurious alcohol.
Opposition parties have accused the government of not acting earlier, claiming that political interference has allowed the liquor mafia to grow stronger. They demand a judicial inquiry into alleged links between certain officials and private contractors.
Meanwhile, public opinion on the issue is sharply divided. Many traders argue that honest shop owners are being harassed by repeated inspections, while residents say strong action is necessary to protect youth and public health.
The government has stated that the ongoing campaign will continue for the next several months, with weekly reviews and cross-department coordination. Strict implementation of new laws will be key to restoring public trust and ensuring transparency in the state’s excise system.
Punjab Collects ₹1.07 Lakh Crore in Excise Tax Over Two and a Half Decades
Punjab’s liquor revenue has grown tenfold over the past two and a half decades. In 2.5 decades, Punjabis have paid over one lakh crore rupees in excise tax on liquor. As the current AAP Cabinet prepares its Excise Policy for 2026-27, liquor revenue has emerged as the backbone of the state’s income.
Revenue Growth Over the Years
Punjab’s average daily income from liquor is now ₹30.19 crore, compared to just a few crore during the Congress government’s time in 2001-2002. During the AAP government’s four-year tenure, the annual liquor revenue has reached ₹39,838 crore — far surpassing the previous Congress government’s five-year total of ₹28,002 crore.
Historical Data on Excise Revenue (₹ Crore)
Period Excise Revenue (₹ Cr) Daily Average (₹ Cr)
2002-07 7,326 4.01
2007-12 10,808 5.92
2012-17 21,294 11.66
2017-22 28,002 15.34
2022-26 39,838 27.28
Total 1,07,268 Crore —
Social activists and the Congress party question the basis on which the current government makes promises to increase excise income every year. Punjab alone accounts for 21.41 bottles of liquor per person per year, meaning Punjab’s per capita excise revenue is ₹1.07 lakh crore — i.e., for every ₹3 lakh crore worth of liquor consumed, ₹121 goes into excise per bottle.
When Punjab was first formed in 1966, the annual liquor excise income was only ₹6.05 crore. Now the liquor model seems deeply entrenched. Liquor is seen as giving birth to many social problems and undermining the health of Punjabis, while the state continues to encourage its consumption. Alcohol is also fueling several diseases and making claims on Punjabis’ lives and wealth.