Lohit Bharambe and Karan Bhojwani, two teetotallers speak about their reasons to stay away from the stocks of the companies dealing in alcohol--their version is supported by this exhaustive research and analysis. They justify why it may be detrimental for your financial health to own liquor stocks in these days of much controversies over liquor sales in various pockets of the country.
INTRODUCTION
In November 2015, Bihar Chief Minister Nitish Kumar announced that alcohol would be banned in the state from April 1, 2016. Kumar officially declared a total ban on April 5, 2016 and later said in a press conference hold –‘All types of liquor will be banned in the state from April 5, 2016. The sale and consumption of any type of alcohol in hotels, bars, clubs and any other place will be illegal from April 5 onward.’
This move definitely raised a few questions whether the ban is good or bad. As this move by the Bihar government would adversely impact the state’s finances as the Bihar government gets revenue of nearly of ₹2,000 crore from the sale of IMFL and revenue of around ₹4,000 crore from country liquor sales in 2015-16. However, Chief Minister Nitish Kumar was clear in his vision as he stated that the government would do everything to discourage the drinking habit as it severely hits the poorest of the poor. The alcohol consumption has caused a lot of problems such road accidents and family problems that result in domestic violence, affecting children’s education. After the ban on liquor in Bihar, other states which joined the liquor ban bandwagon were: Kerala: Implemented liquor ban in a phased manner Tamil Nadu: Ruling AIADMK is mulling complete liquor ban in the state in a phased manner Madhya Pradesh: Considering complete liquor ban Chhattisgarh: Considering complete liquor ban
This story is from the May 14 2017 edition of Dalal Street Investment Journal.
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This story is from the May 14 2017 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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