Since January, authorities say they have seized 3,500 litres of alcohol worth almost Rs 40 lakhs.
Gujarat maybe a dry state but an NDTV investigation has revealed just how alcohol worth crores of rupees is smuggled in from Madhya Pradesh.
On the trail of the illegal liquor flowing into Gujarat, we went to a roadside hotel in the Chakaliya village of Gujarat's Dahod district, just two kilometres from the state border with Madhya Pradesh.
The hotel manager told us, "Although Gujarat is a dry state, availability of liquor is not an issue. It is smuggled in abundance from Vattha in Madhya Pradesh."
Although they sell it at a higher rate, buying smuggled liquor was surprisingly easy in a state where prohibition in force since 1958.
Crossing the border to Madhya Pradesh, there were no police or excise departments check posts in sight. We visited the liquor shop in Vattha village, which was auctioned earlier this year by the state government for a whopping Rs 25.5 crore.
Hinting at just how lucrative the liquor-smuggling racket is, shops along the border, even in poor tribal dominated villages, have been auctioned at more than double their base price in Madhya Pradesh.
Surprisingly with a population of just over 3,000, comprising mainly of tribals, the shop appeared to stock only expensive brands of premium liquor.
Back at the border, we met a former employee of a liquor shop. "The police and excise do not interfere much. They have an understanding with the shop owners," he said.
Explaining how the liquor is smuggled in, he says that state governments, including Madhya Pradesh issue road permits for trucks carrying alcohol.
"Using this permit for one truck, shop owners transport eight truckloads of alcohol without paying taxes. And the cost of liquor comes down to almost half," he said.
The police and excise departments however deny any involvement. Since January, they have seized 3,500 litres of alcohol worth almost Rs 40 lakhs, they say.
Jhabua Police Superintendent Abid Khan said, "There is not a specific route to Gujarat. There are many routes through villages. So having check posts will not have much affect but we patrol the area."
"There is no quick fix solution to the liquor smuggling problem as it happens in border area. It is a challenge for us," he said.