Merger of Daman with Gujarat

What is the issue?

People of the Union territory of Daman observed a total bandh in April to protest the recent suggestion of Gujarat HC that the Centre should merge Daman with Gujarat to ensure prohibition laws are effectively implemented in the dry state.

What happened?

• After 23 people Vareli village in Surat district died after allegedly consuming spurious liquor in September 2016, Surat IG has arrested 14 liquor traders.
• Accused — all residents of Daman — moved Gujarat High Court, seeking the quashing of the FIRs.
• They argued that sale of liquor was not an offence in Daman.
• On April 11, Justice Pardiwala expressed frustration with the limited results from the prohibition policy: “The prohibition policy in Gujarat state has not been able to yield positive results. Either the policy is not effective or something is wrong with the implementation of law.” 
• The Central Government should consider denotifying Daman as a part of Union Territory and make it a part of the Gujarat state, so as to make the prohibition Act applicable, providing more stringent provision.

How important is the liquor industry for Daman and Diu?

• The liquor industry is estimated to be worth Rs 30 crore in the district, and generated excise revenue of Rs 8.71 crore in 2016-17.
• Diu’s tourism industry is dependent on its liberal liquor policy.
• Daman’s liquor revenues are much higher — the Excise Department collected Rs 250 crore in 2016-17.

What could happen now?

• Parliament has the power to reorganise states. The government can form a States Reorganisation Commission.
• But such a move can proceed smoothly when there is a popular demand.
• In a democracy, the will of the people is supreme. The government will first have to ascertain the will of the people of Daman and Diu before any merger can happen.

Source: Indian Express