Patna High Court Quashes FIR Against Siddhi Enterprises Over “Energy Drink” Controversy

Patna High Court Quashes FIR Against Siddhi Enterprises Over “Energy Drink” Controversy

The Patna High Court has set aside an FIR filed against M/s Siddhi Enterprises and its employees, who were accused of allegedly selling beer under the guise of energy drinks. The Court held that the beverages in question complied with the Bureau of Indian Standards (BIS) norms for non-alcoholic drinks and therefore did not fall within the purview of the Bihar Prohibition and Excise Act, 2016.
 
Justice Alok Kumar Pandey, while allowing a writ petition moved by Kumari Punam, proprietor of Siddhi Enterprises, along with two staff members, ruled that the allegations made in the FIR did not disclose any cognizable offence under the prohibition law.
 
The case originated in February 2017 following a newspaper report which alleged that beer was being marketed in the form of energy drinks with names closely resembling popular liquor brands such as “Thunder Bolt” and “Kingfisher.” Acting on this report, the Excise Department conducted a raid at the firm’s premises. Several beverages were seized, including WFM Super Strong 10000, Thousand Bolt, Kalalon Golden, and Kingfermer. The Sales Manager and Accountant were taken into custody, and it was claimed that the seized products contained 4% to 5% alcohol.
 
The FIR accused the enterprise of violating prohibition laws by manufacturing and selling alcoholic drinks in disguise.
 
The petitioners maintained that their company was duly licensed under the Food Safety and Standards Act, 2006 and that the products underwent regular laboratory testing by government agencies. These reports consistently showed ethyl alcohol content between 0.2% and 0.4% v/v, which fell well within the BIS threshold for non-alcoholic beer (up to 0.5% v/v).
 
They further argued that the later reports from the Forensic Science Laboratory (FSL), which indicated alcohol levels ranging between 2.24% and 2.58%, were not a reflection of the product’s original state. Instead, these higher readings resulted from natural fermentation occurring after the beverages were stored, a factor beyond their control.
 
After analyzing the rival submissions, the Court clarified the legal position under the Bihar Prohibition and Excise Act, 2016. The Act prohibits the sale and consumption of alcoholic and intoxicating beverages, as defined under Section 2(3). However, it does not extend to non-alcoholic products that conform to the standards fixed by BIS, as explained in Section 2(4)(6).
 
Justice Pandey observed:
• The seized products, at the time of inspection, met the BIS definition of non-alcoholic beverages.
• Criminal liability under prohibition law must be judged at the time of seizure, not on the basis of subsequent laboratory variations caused by fermentation.
• Since the beverages were compliant with BIS norms, the petitioners could not be prosecuted for violating the prohibition law.
 
The Court concluded that the continuation of the FIR proceedings would amount to abuse of the process of law, as no intoxicant or liquor in violation of statutory provisions was being sold.
 
Accordingly, the High Court allowed the writ petition and quashed the FIR against Siddhi Enterprises and its employees. The decision underscores the legal distinction between alcoholic drinks and BIS-compliant non-alcoholic beverages, reaffirming that prohibition laws cannot be stretched to cover products that meet recognized food safety standards.
 
 
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