MAHARASHTRA EXCISE OFFICIAL DOCUMENT ANALYSIS

Document Type: Government Resolution (Shasan Narnay) — New Toddy Policy

Reference Number: TOD-0621/Pr.Kr.89/RAUSHU-3 | Dated 30 August 2021

Issued By: Government of Maharashtra, Home Department (Grah Vibhag)

Effective Date: From 1 September 2021 (for FY 2021-22 onwards; Toddy Year runs 1 September – 31 August)

Portal ID: 1525 | Digital Signature Reference: 202108301725392629 | Website: www.maharashtra.gov.in

SUMMARY

This landmark Government Resolution introduces a comprehensive new Toddy (Tadi) Policy for Maharashtra, replacing fragmented prior orders. The policy establishes a unified 5-year combined license cycle (license + 4 renewals) using "Sealed Bid-Lottery-Bid" (Licilaav-Niviada) method, with 6% annual price escalation for renewals. It mandates stringent adulteration control measures using advanced testing kits, fixes maximum shop valuations at ₹10 lakh to prevent premium-driven adulteration, prescribes tree-to-shop digital tracking (Geo-Tagging), and allows inter-district toddy sourcing under strict freshness conditions. All existing prior GRs from 2016–2018 are superseded.

KEY PROVISIONS

1. LICENSE TENURE & PROCEDURE (Section 1.2)

Previous System (1995–2021):

• First year: Sealed Bid-Lottery-Bid method
• Next 4 years: Automatic renewal with 6% annual increase
• After 4 years: Fresh bidding required

New System (1 September 2021 onwards):

• Combined Tenure: 5 continuous years (1 combined cycle = Year 1 Bidding + Years 2–5 Renewals)
• Year 1 (FY 2021-22): Fresh sealed bid-lottery-bid auction
• Years 2–5 (FY 2022-26): Automatic annual renewal with 6% price escalation on previous year's shop value
• After Year 5 (FY 2026-27): Fresh sealed bid-lottery-bid auction conducted again
• Cycle repeats: Subsequent 5-year periods follow identical pattern
• Tied Bids: If highest bids are equal in sealed bid stage, lottery method (random draw) applied to select licensee

Text Amendment:

• Supersedes: GR dated 28 October 2016, 2 December 2016, 21 August 2017

2. ADULTERATION PREVENTION & QUALITY CONTROL (Section 1.3)

Testing Methods (Mandatory):

Option A — National Laboratories:

• Use equipment developed by National Chemical Laboratory (NCL), Pune for detecting all types of adulterants in toddy
• Use Novel Colour Test Kit (available from NCL) for immediate detection of Chloral Hydrate (C₂H₃Cl₃O₂) adulterant

Option B — Approved Procedures:

• Follow methodology prescribed by Indian Institute of Chemical Technology (IICT), Hyderabad as per Commissioner of State Excise Circular dated 21 October 2003

Liability & Enforcement:

• Guarantee: District Magistrate must obtain written guarantee from shop licensees that no adulterated toddy will be sold
• Suspension: If adulterated toddy detected, licensee's TD-1 (license) immediately suspended (not cancelled, but operations halted)
• Final Testing: Confirmation sample sent to Haffkine Institute, Parel, Mumbai or other Government-approved testing laboratories
• Legal Action: Upon final adverse report, prosecution under relevant laws (Bombay Prohibition Act 1949, Food Safety & Standards Act 2006)

Repeat Offender Discipline:

• Blacklist Penalty: If Chloral Hydrate or similar toxic adulterants found repeatedly or in multiple shops within an officer's jurisdiction, the responsible Excise Officer faces strict disciplinary action by Commissioner of State Excise
• Blacklist Registration: Licensee involved in proved adulteration must be blacklisted permanently — no future participation in TD-1 bidding allowed

Inter-Departmental Coordination:

• Food & Drug Administration (FDA) and State Excise Department must conduct joint or separate inspections of toddy shops to monitor quality
• Emphasis on modern management practices for palm trees and standardized shop valuations

3. MAXIMUM SHOP VALUATION CEILING (Section 1.4)

Rationale:

• One quality toddy tree yields ~150 liters/year
• Trees are tapped every 1–2 years, then every 1–2 days post-commencement
• Revenue from 150 liters of toddy sales + shop license fee must be economically balanced
• Excessive shop valuations (>₹10 lakh) create incentive for licensees to adulterate to maintain profitability

Policy Decision:

Maximum Valuation Cap: ₹10 Lakh per shop

• Existing shops valued >₹10 lakh: District Magistrate must subdivide the shop's operational area into multiple zones, each with ₹10 lakh maximum valuation (without state revenue loss)
• New shop declarations: All fresh shops in high-value areas must be auctioned at maximum ₹10 lakh valuation using sealed bid-lottery-bid method
• Effect: Prevents premium-driven adulteration; ensures licensee profitability remains reasonable

4. TREE COUNT NORMS BY URBAN/RURAL (Section 1.5)

Ratio Standard for One Toddy Shop:

Urban Areas (All Municipal Corporations, District Head Councils, 'A' Grade Municipal Councils):

• 800–1,000 toddy-bearing palm trees per shop

Semi-Urban & Rural Areas (Improved Municipal Councils, Municipal Panchayats, Rural Talukas):

• 400–500 toddy-bearing palm trees per shop

Data Collection Requirement:

• Prerequisite: District Magistrate must first:
  1. Obtain accurate inventory of toddy trees available within district
  2. Count trees available from outside the district
  3. Verify both datasets
• Only after verification: District Magistrate declares final number of shops permitted
• Detailed Circular: Commissioner of State Excise to issue comprehensive circular with tree survey procedures

5. INTER-DISTRICT TODDY SOURCING (Section 1.7)

Permissibility:

Toddy may be transported across district boundaries for sale in licensee shops, subject to strict conditions:

Mandatory Conditions:

1. Freshness Window: Transport time must not exceed 10 hours from the TD-3 Pass (transport permit) issuance
2. Distance Limit: Distance from toddy-extraction site to retail shop must be ≤400 km
3. TD-3 Pass Required: All cross-district transport must be documented via TD-3 Pass

Rationale:

• Ensures supply stability for toddy shops in districts with insufficient local trees
• Preserves toddy freshness (fermentation begins within 24 hours of SAP extraction under sunlight)
• Prevents stale/over-fermented toddy distribution

Prior Policy Superseded:

• Replaces restrictive GR dated 21 August 2017 that allowed inter-district sourcing only for Mumbai, Mumbai Suburban, and Thane districts from Palghar & Raigad
• New policy: General permission for all districts, subject to freshness conditions

6. CLOSED SHOPS — RE-LICENSING AFTER ADULTERATION CLOSURE (Section 1.6)

Scenario:

Shop closed due to proved adulteration (sample found adulterant, license cancelled), later re-licensed

Re-licensing Procedure:

• May be granted via sealed bid-lottery-bid method
• Remaining Cycle Duration: If granted during ongoing 5-year cycle (e.g., June 2023 closure, re-auctioned July 2023), shop receives license for remaining years only (not full 5 years)

Example Timeline:

• Original license issued: FY 2021-22 (valid to 31 August 2026)
• Adulteration detected & shop closed: June 2023
• Shop re-auctioned: July 2023
• New license validity: July 2023 to 31 August 2026 only (residual period)
• Critical: No renewal permitted after 31 August 2026 — must enter fresh bidding cycle

Blacklist Clause:

• Licensees convicted of adulteration are permanently blacklisted
• Cannot participate in future TD-1 bidding for any toddy shop

7. TODDY PRESERVATION & PACKAGING (Section 1.8)

Problem Identified:

• Toddy SAP (fresh sap from tree) undergoes natural fermentation when exposed to sunlight
• Within 24 hours: Alcohol content increases, acetic acid increases, drinkability diminishes

Research Directive:

Commission research from:

1. Vasantdada Sugar Institute, Pune
2. National Chemical Laboratory (NCL), Pune
3. Indian Institute of Chemical Technology (IICT), Hyderabad

Research Objective: Develop optimal preservation methods through bottled storage at controlled temperatures to extend shelf-life beyond 24 hours

8. E-LICENSING SYSTEM (Section 1.9)

Online Digitalization Mandate:

Develop computer systems for:

• TD-1 (License/Anujñapti)
• TD-3 (Transport Permit/Vahatuk Paravana)
• TD-5 (Tree-Cutting Permit/Tadi Zhade Chednyacha Paravana)

Implementation:

• All licenses and permits to be issued online (e-licensing)
• Entire approval workflow to be digitalized for transparency and ease of access
• Action to be taken at earliest opportunity

9. FSSAI FOOD SAFETY REGISTRATION (Section 1.10)

Mandatory Requirement:

After TD-1 license approval, licensees must obtain:

• Registration/License under Food Safety & Standards Authority of India (FSSAI) under the Food Safety & Standards Act, 2006
• This becomes compulsory condition of TD-1 grant

10. GEO-TAGGING & COMPUTER TRACKING (Section 1.11)

Implementation Timeline:

Start: Toddy Year 2022-23 (from 1 September 2022)

Scope:

Geo-tag all palm-species trees yielding toddy (coconut palms, palmyra palms, date palms, etc.)

System Functions:

Using Geo-Tagged computerized system, enable real-time tracking of:

1. Tree Location: Exact geographical coordinates of toddy-yielding trees
2. Tree Count: Precise number of tappable trees in each operational zone
3. Toddy Volume: Quantity of toddy extracted from tagged trees
4. Transport Authorization: Digital TD-3 Pass linked to specific tree Geo-Tags
5. Shop Sales: Point-of-sale integration showing toddy sale origin

Enforcement Benefit:

• Eliminates illegal/adulterated toddy — complete supply chain visibility from tree to consumer
• Department gains full control over toddy movement
• Prevents clandestine non-registered toddy distribution

11. NOMENCLATURE CHANGE (Section 1.12)

Previous Term: Toddy (Tadi)

New Official Term: Palm Wine (in English correspondence)

• Marathi designation remains "Tadi"
• Elevates product status internationally

12. TRANSITION ARRANGEMENTS — GRACE PERIOD (Section 3)

FY 2020-21 Lingering Licenses:

• End Date: FY 2020-21 expires 31 August 2021
• Bidding Timeline Challenge: Minimum 15-day notice required for sealed bid-lottery-bid process; insufficient time in FY 2020-21 remaining
• Relief: Existing TD-1 licensees from FY 2020-21 granted 1-month grace extension through 30 September 2021
  • Fee charged: Monthly proportionate amount (calculated on FY 2020-21 rate)
  • Permits continued operation during transition

FY 2021-22 Fresh Bidding:

• Fresh sealed bid-lottery-bid auctions to commence immediately after 1 September 2021
• Covers 5-year cycle: FY 2021-22 to FY 2025-26
• All auction, licensing, and renewal processes must be completed during grace period

PRIOR ORDERS SUPERSEDED

The following Government Resolutions are explicitly amended/nullified:

All provisions in above GRs are replaced by this new 30 August 2021 policy.

DISTRIBUTION & COMPLIANCE

Authorities Responsible for Implementation:

1. Chief Minister's Principal Secretary — Policy oversight
2. Deputy Chief Minister's Special Secretary — Coordination
3. Special Secretary, State Excise (RAUSHU) — Execution
4. Commissioner of State Excise, Maharashtra — Operational implementation
5. All Divisional Commissioners — Regional enforcement
6. All District Magistrates — Local shop licensing & tree census
7. All Divisional Deputy Commissioners, State Excise — Permit issuance
8. All Superintendents, State Excise — Inspection & adulteration control
9. Food Safety Commissioner — FSSAI coordination

IMPORTANT NOTES & SPECIAL PROVISIONS

Critical Penalties & Enforcement:

1. Adulteration = Permanent Blacklist: No redemption for convicted licensees; lifetime exclusion from bidding

2. Disciplinary Action Against Officers: Repeated adulteration in an officer's jurisdiction triggers strict disciplinary proceedings against that officer

3. No Carryover of 5-Year License: After 5 years, automatic expiry — no automatic renewal into 6th year; must re-bid

4. Tied Bid Resolution: Lottery only used after sealed-bid stage shows equal highest bids; not alternative to transparent bidding

5. Maximum Valuation is Absolute Ceiling: No shop can be auctioned above ₹10 lakh; existing high-value shops must be subdivided

Eligibility Clarifications:

• Bidders: Must be resident of the district (per earlier GR, continued here)
• One shop per bidder: Not explicitly stated in this GR but implied by prior orders
• FSSAI Registration: Mandatory pre-condition to operate after TD-1 issued

Appeals & Review:

Not specified in this GR; presumed to follow general Excise Act provisions (appeal to higher Excise authority, then Appellate Commissioner)

Documentation Requirements for Bidding:

The GR does not detail bid document requirements; Commissioner's circular (referenced in Section 1.5) expected to specify:

• Bid form format
• Earnest Money Deposit
• Bid submission procedure
• Lottery draw rules
• License fee payment schedule

FEES SCHEDULE

No explicit fee amounts stated in this GR.

The GR references that:

• First Year: License value determined by sealed bid-lottery-bid auction
• Years 2–5: Previous year's shop valuation × 1.06 (6% escalation)
• Maximum Permissible Valuation: ₹10 lakh

Example calculation (illustrative):

• If FY 2021-22 shop auctioned at ₹5 lakh:
  • FY 2021-22: ₹5.00 lakh
  • FY 2022-23: ₹5.30 lakh (₹5 lakh + 6%)
  • FY 2023-24: ₹5.618 lakh (₹5.30 lakh + 6%)
  • FY 2024-25: ₹5.955 lakh
  • FY 2025-26: ₹6.313 lakh

Specific fee schedules to be issued separately in Commissioner's circular.

FORMS & ENCLOSURES

This GR does not detail application forms or enclosures. Separate notification expected to include:

• TD-1 Application Form (License application)
• TD-3 Form (Transport permit)
• TD-5 Form (Tree-cutting permit)
• Geo-Tagging Registration Form (for tree inventory)
• Affidavit of non-adulteration (guarantee from licensee)
• FSSAI Registration Certificate (documentary proof)

WHO IS AFFECTED

Primary Beneficiaries/Subject Parties:

1. Existing TD-1 Licensees (FY 2020-21): Eligible for 1-month transition grace (to 30 Sept 2021)
2. New Bidders (FY 2021-22 onwards): Must participate in sealed bid-lottery-bid for 5-year license
3. Previously Closed Shops (due to adulteration): Can be re-auctioned for remaining cycle duration only
4. Toddy Tree Owners/Cultivators: Subject to Geo-Tagging from 2022-23
5. Toddy Consumers: Benefit from adulteration-free supply
6. District Magistrates: Responsible for shop count, tree census, inter-district approvals
7. State Excise Officers: Duty to inspect shops, conduct adulteration tests, take disciplinary action
8. FSSAI: New jurisdiction over toddy shops (food safety compliance)

Geographic Scope:

• All toddy-bearing districts of Maharashtra (primarily coastal, Western Ghats, and plain regions with palm cultivation)

STATUTORY REFERENCES IN THIS DOCUMENT

1. Bombay Prohibition Act, 1949 — General regulatory framework
2. Maharashtra Toddy Shops (License Grant) Rules & Tree-Cutting Rules, 1968 — Primary regulation for shop licensing & tree management
3. Maharashtra Toddy Shops (License Grant by Sealed Bid-Lottery-Bid Method) Order, 2001 — Procedural rules for sealed bidding
4. Food Safety & Standards Act, 2006 — FSSAI registration requirement
5. Government Notification dated 4 June 2001 (Grah Vibhag) — Earlier sealed bid system introduction
6. Government Notification dated 9 August 2010 (Grah Vibhag) — Earlier amendments
7. Commissioner's Circular dated 21 October 2003 — Adulteration testing procedures (Indian Institute of Chemical Technology)

CRITICAL DATES TIMELINE

NOTES FOR PRACTITIONERS

Key Policy Shifts:

1. From Annual Renewal to 5-Year Bundling: Provides licensee tenure security but requires larger upfront bid
2. Maximum Cap at ₹10 Lakh: Prevents predatory valuations; redirects competition to service quality rather than rent-seeking
3. Geo-Tagging: Transformative technology for eradicating clandestine toddy trade
4. Adulteration Zero-Tolerance: Permanent blacklisting + officer discipline signals state commitment to safety
5. Inter-District Sourcing Liberalization: Earlier policy was unnecessarily restrictive; new policy balances supply with freshness

Implementation Risks:

• Geo-Tagging complexity: Requires coordination across forest, revenue, and excise departments
• FSSAI Interface: Many small toddy licensees unfamiliar with food safety compliance; training needed
• Bid Valuation Disputes: Need for clear baseline valuation methodology to prevent litigation
• Officer Resistance: Blacklisting & disciplinary clauses may face resistance from implementing officers

Expected Regulatory Follow-up:

• Commissioner circular on detailed bidding procedures (within 30 days)
• Separate notification amending 1968 Rules and 2001 Order (within 60 days)
• Geo-Tagging digital system specifications (within 3 months)
• FSSAI coordination protocol (ongoing)

END OF ANALYSIS

This Government Resolution represents a comprehensive modernization of Maharashtra's toddy licensing regime, pivoting from fragmented annual procedures to integrated 5-year cycles with technology-driven supply chain transparency and rigorous quality assurance.