The Gujarat Assembly has passed an amendment to the Prohibition Act, allowing the government to auction vehicles seized in liquor smuggling cases even before court rulings. The amendment addresses the issue of thousands of vehicles lying unused in police stations and court compounds. With over 7,000
In a significant legislative move, the Gujarat Assembly passed an amendment to the Gujarat Prohibition Act on August 22, 2024, empowering the state government to auction vehicles confiscated for transporting liquor or other intoxicants, even before a court’s final judgment in the case. The bill, passed by majority vote despite opposition from the Aam Aadmi Party (AAP) and the suspension of Congress MLAs, aims to address the piling up of seized vehicles, many of which lie unused for years.
Key Provisions of the Amendment Bill:
- Auctioning of Seized Vehicles: The amendment empowers the government to auction confiscated vehicles in liquor smuggling cases without waiting for the final judgment of the court.
- Original Act’s Restrictions: Previously, vehicles seized with over 20 litres of liquor could not be released on bond or surety until the case was fully resolved in court. This led to thousands of vehicles lying unused in police stations and court compounds.
- Current Situation: According to Minister of State for Home, Harsh Sanghavi, there are over 7,000 confiscated vehicles, including 300 luxury cars, which are at risk of turning into scrap due to prolonged storage. Sanghavi remarked, “In some cases, vehicles are piled up in two-three layers… These seized vehicles include nearly 300 luxury cars worth several crore rupees.”
Utilization of Auction Proceeds:
- Benefit for Public Schemes: With the passage of the bill, the state can now sell confiscated vehicles through auction and use the proceeds for schemes benefiting the poor. Sanghavi explained that this will prevent vehicles from losing value, saying, “This will save vehicles worth crores of rupees from turning into scrap. Vehicles will fetch good prices if sold in time.”
- Compensation for Acquitted Owners: If an accused individual is acquitted after appealing to the High Court or Supreme Court, they will be entitled to receive the auction proceeds with 5% annual interest.
Exceptions and Opposition:
- Threshold for Seizure: Sanghavi clarified that vehicles are not seized under the Act if the liquor quantity is less than 20 litres.
- Opposition and Suspensions: The bill faced opposition from AAP MLAs, with four AAP legislators voting against it. Congress MLAs were not present during the voting as they had been suspended for the day by the Speaker during the early proceedings of the Assembly.
- Prior to the Prohibition Amendment Bill, the Assembly also passed the Gujarat Goods and Services Tax (Amendment) Bill, 2024, which implements the decisions of the GST Council’s 50th and 52nd meetings.
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