- Except as hereinafter provided, the provisions of this Act shall not apply to the sale of foreign liquor, but when an empowered local body has prescribed a maximum number of licensed shops under section 4 or section 5 or has prohibited the sale of liquor under section 5, and the [State] [Substituted for the word 'Provincial' by Adaptation of Laws Order, 1950.] Government is satisfied that the object of such prescription or prohibition is being evaded by the sale of foreign liquor in the local area concerned, the State Government shall by rule made under section 58 of the Punjab Excise Act, 1914, prohibit the Collector from granting a licence for the sale of foreign liquor in the said local area except in accordance with the terms of such resolutions as such empowered local body may have passed or may pass in respect of country liquor, or with the special sanction of the State Govt.
