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The Patna High Court on Friday quashed the Nitish Kumar government's Bihar Excise and Prohibition Bill, 2016, that gave sweeping powers to the police to arrest all members of a house in which liquor bottles are found.
The court termed the Bill, all sections of which are non-bailable, illegal.
The stringent Bill was passed in August in the state Assembly by voice vote.
Lawmakers have called provisions under the bill "draconian". Kumar had earlier said that the new law "will go a long way in enforcing total prohibition".