Government
Some Cities Are Inadvertently Supporting Illicit Cannabis Sales, According To New Report
Instead of reasonably regulating legal sales, it’s increasingly common for leaders to opt out of legalized sales entirely, with unintended consequences.
Leafly released a first-of-its-kind report detailing the unintended and harmful consequences that occur when local municipalities choose to opt out of legal and regulated cannabis sales.
The report, developed in partnership with Whitney Economics, a global leader in cannabis and hemp business consulting, data, and economic research, reveals the adverse consequences of opting out and explores why local regulation, not local prohibition is the right way to handle cannabis.
Opting In To Legalized Sales Would Benefit The Entire Community
After legal cannabis is approved in a state, numerous legalization laws enable local municipalities to establish specific regulations within cities and counties. That is, they can choose to sell cannabis or not to sell cannabis.
According to the Leafly report, “instead of reasonably regulating legal sales, it is increasingly common for leaders to opt out of legalized sales entirely, with unintended consequences that effectively create an economic protection zone for illegal street sellers to continue the business.”
Leafly’s Opt-Out Report found that local leaders who choose to opt out of cannabis sales are hurting their communities by:
- Indirectly encouraging adult consumers to purchase illegal products
- Putting public health at risk by allowing the circulation of untested products
- Sustaining illegal sales to local teens
- Turning away local jobs and tax revenue
- Continuing the losing War on Drugs
Bruce Barcott, the report’s lead author and Leafly’s senior editor, said “this report demonstrates that legal, regulated cannabis stores put illicit marijuana dealers out of business.
“Fears surrounding local cannabis stores may prompt elected officials to prohibit cannabis companies in their towns. But adults in every community already purchase and enjoy cannabis, legal or not,” he said. “The cities and counties that skip out on cannabis are essentially voting to keep their local illegal marijuana markets in business.”

The Opt-Out Cannabis Sales Situation In Some U.S. States
After four years of legal cannabis in California, illegal street sellers still satisfy more than 50% of the state’s adult consumer marijuana demand, and it’s no coincidence that 62% of the state’s municipalities have opted out of regulated retail sales.
More recently in New Jersey, which launched legal cannabis sales this past April, 71% of local municipalities have prohibited the sale of legal, state-regulated cannabis. “That has left the state’s adult consumers with few legal options. With only one store for every 358,000 residents, illegal street sellers still command more than 80% of the marijuana market,” according to Leafly.
In New York, which will begin legal recreational cannabis sales soon, 50% of all municipalities have chosen to opt out. New York’s Cannabis Control Board (CCB) recently adopted regulations allowing home cultivation for card-carrying MMJ patients and caregivers.
“Today, nearly 45% of Americans live in a legal, adult-use state. If pending legalization measures gain approval on the November ballot, half of all Americans could live in a legal cannabis state by 2023,” continued the Leafly report. “In every newly legal state, local officials will be called upon to regulate cannabis in ways appropriate for their community. Opting out isn’t a vote against marijuana—it’s a vote in favor of illegal dealers.”

Report Methodology
The data in Leafly’s 2022 Opt-In Report “derives from a variety of public and private sources. Unless otherwise noted, data cited by Leafly and Whitney Economics represents market conditions as of July 1, 2022. Cannabis sales figures and active license numbers are dynamic. We chose July 1, 2022, as a firm point-in-time mark to ensure data completeness from all states under review.”
According to the report:
- The number of legal cannabis stores per capita was derived using public licensing data released by state cannabis regulatory agencies. The state population is current as of the 2020 US Census.
- The percentage of cannabis sales captured by the legal market “was derived by comparing each legal state’s annual cannabis sales with that state’s Total Market Estimation,” the authors said.
- TME is defined as the value of total cannabis sales in a calendar year, regardless of the legal status of the product.
Finally, Beau Whitney, co-author of the report and founder of Whitney Economics said: “Access and taxes, those are the keys to customer migration to the legal market (…) And right now we’re seeing illegal cannabis sales propped up by opt-out cities and counties.”
Corruption
Four Ganga Land Leases Cancelled in Sambhal After Record Irregularities
The Sambhal district administration has cancelled four government land leases issued more than three decades ago after an official investigation found alleged irregularities in the classification and allotment of Ganga river land.
The action follows an inquiry that concluded approximately 31 bigha of land in Surpur village of Gunnour tehsil was leased after its original revenue classification was allegedly altered, allowing land categorized as riverbed to be treated as agricultural property.
Inquiry Reveals Alleged Record Manipulation
The decision was taken by the Additional District Magistrate (ADM) based on an investigation conducted by the Sub-Divisional Magistrate (SDM), Gunnour.
Officials found that while the current revenue records listed the land as transferable agricultural property, older consolidation documents identified it as Category-6(1) submerged river land, making it ineligible for such allotments.
Following the findings, the administration ordered the cancellation of all four leases and directed revenue officials to restore the land’s original classification in official records.
Leases Issued in 1991 Declared Invalid
According to the inquiry, the disputed leases were granted on November 17, 1991, in the names of Shrinivas, Sher Singh, Shakuntala, residents of Surpur village, and Prakash Chandra of Patei Kayasth village.
Authorities stated that the allotments did not comply with the provisions of Section 128 of the Uttar Pradesh Revenue Code, 2006, prompting their cancellation.
Officials said corrective entries are now being made in the revenue records to reflect the land’s original legal status.
Wider Probe Into Ganga Riverbank Land Allotments
The latest action is part of a broader investigation into alleged irregularities involving government land located along the Ganga riverbank in Sambhal district.
Earlier investigations uncovered suspected illegal allotments involving nearly 845 bigha of government land in Sukhailla village under Gram Panchayat Asadpur, where 162 leases are also under scrutiny.
Investigators believe a similar pattern may have been followed in multiple cases, with riverbed land allegedly reclassified as agricultural land before being leased to individuals.
Field inspections reportedly found that much of the land was unsuitable for conventional farming and was instead being used for activities such as sand mining.
Government Land Worth ₹18 Crore Under Review
District officials estimate that approximately 850 bigha (around 71.5 hectares) of government land, valued at nearly ₹18 crore, is currently under investigation.
Authorities have launched a comprehensive review of historical land leases issued across villages situated along the Ganga river in the Rajpura, Gunnour, and Junawai blocks.
The objective is to determine which allotments were made legally and identify cases where land records may have been manipulated.
Officials’ Role Also Being Examined
The investigation has also raised questions about the possible involvement or negligence of officials from the revenue and consolidation departments.
District authorities said responsibility will be fixed after the inquiry is completed, and legal or departmental action will be taken against anyone found to have violated land allotment rules.
Officials indicated that the ongoing review could reveal additional cases involving unauthorized occupation or irregular leasing of government land.
The administration has reiterated its commitment to restoring government property and ensuring transparency in land management across the district.
Education & Training
NTA Warns NEET UG 2026 Candidates Against Fake OMR Sheets
The National Testing Agency (NTA) has issued a warning to NEET UG 2026 candidates and their parents against submitting fake, altered, or AI-generated OMR sheets while raising objections related to examination results.
The examination authority said that candidates found providing fabricated documents or misleading information during the verification process could face legal consequences.
The warning comes after several students approached the agency with complaints alleging discrepancies between their expected scores and the marks published in the final results.
NTA Finds Suspicious Documents During Verification
According to the NTA, some candidates submitted OMR sheets while requesting score verification, but officials found that certain documents appeared to be manipulated or artificially generated.
The agency clarified that only original OMR sheets issued during the examination process will be accepted for reviewing complaints.
NTA officials said they are examining all grievances carefully and will consider only verified examination records while deciding on score-related concerns.
Students Raise Questions Over NEET UG Results
After the announcement of NEET UG 2026 results, several candidates reported differences between their estimated marks based on the official answer key and their final scorecards.
Some students claimed that their expected scores were significantly higher than the marks awarded in the results.
In some reported cases, candidates alleged that uploaded OMR sheets did not match their original answer sheets or that the displayed scores were inconsistent with their calculations.
The complaints prompted several students and parents to seek clarification and request a detailed review of the evaluation process.
AI-Generated Fake Records Create New Challenge
The NTA has highlighted the growing misuse of artificial intelligence tools to create fake examination documents.
Officials said digitally altered OMR sheets and fabricated records could create difficulties in identifying genuine grievances and may affect the integrity of the complaint resolution system.
The agency advised candidates to avoid using unofficial documents or modified materials while submitting objections.
Candidates found involved in producing false evidence may face action under applicable laws, the NTA warned.
NEET UG 2026 Conducted Again After Paper Leak Allegations
The NEET UG 2026 examination process faced controversy after allegations of a paper leak led authorities to cancel the original exam held on May 3.
A re-examination was conducted on June 21 for affected candidates, following which results were announced on July 16.
After the controversy, the government announced plans to move future NEET UG examinations from the traditional pen-and-paper format to a computer-based testing (CBT) system.
Verification Process Continues
The NTA said the review of complaints submitted by candidates is still underway and further decisions will be taken after completing the verification of all documents.
The agency has urged students to rely only on official communication channels and submit genuine records while seeking clarification about their results.
Corruption & Governance
Goa PWD Tenders Worth ₹1,000 Crore Come Under Government Probe
The Goa government has initiated a detailed investigation into alleged irregularities in Public Works Department (PWD) tenders worth nearly ₹1,000 crore, following complaints of document manipulation and misuse of contractor eligibility credentials.
The probe focuses on claims that certain construction firms may have secured high-value infrastructure contracts by submitting falsified or altered work completion certificates to qualify for top contractor categories.
Allegations of Fake Experience Certificates in Tender Bids
According to complaints filed by engineers and contractors, several companies allegedly used questionable documentation to obtain Class IAA contractor status, a designation that allows participation in large-scale government infrastructure projects.
Investigators are examining whether manipulated work completion certificates were used to falsely demonstrate prior project experience, thereby inflating eligibility during the tender evaluation process.
One of the key concerns involves references to infrastructure projects executed under Karnataka Neeravari Nigam Limited, including the “Mudi Tank Filling Scheme.” Authorities are verifying claims that duplicate or inconsistent completion certificates may have been issued for the same project.
JV Structure Alteration Under Scrutiny
Officials are also investigating alleged changes in joint venture (JV) agreements submitted during tender applications. In one case under review, a 2019 JV reportedly listed Amrita Constructions Private Limited as the lead partner, with another firm as a supporting entity.
However, documents submitted to Goa PWD allegedly reversed these roles, naming Bagkiya Constructions as the lead partner. This change is suspected to have significantly enhanced the company’s technical eligibility and past performance record.
Authorities believe such alterations may have allowed firms to qualify for contracts they would otherwise not have been eligible for under standard procurement norms.
Allegations Linked to Karnataka Project Documentation
Another complaint under review concerns the “Akka Mahadevi Memorial Project” in Shivamogga, Karnataka, valued at over ₹51 crore. It is alleged that the project, executed in phases, was incorrectly represented as a single completed contract to meet eligibility requirements for higher-value tenders.
Investigators are verifying whether such representations were used to gain unfair advantage in experience-based qualification criteria.
Government Launches Comprehensive Inquiry
Following the emergence of these allegations, the Goa government has ordered a preliminary inquiry into all related contracts, approvals, and supporting documentation.
Officials have stated that every stage of the tendering process—including eligibility checks, certificate validation, and contract award decisions—will be examined in detail.
If irregularities are established, possible actions may include contract cancellation, blacklisting of firms, recovery of funds, and legal proceedings against those involved in submitting false documentation.
Concerns Over Procurement Transparency
The case has raised broader concerns about transparency and verification systems in public infrastructure procurement. Experts point out that reliance on manual documentation without robust digital verification increases the risk of fraud in large-scale government contracting.
Transparency advocates have called for stronger auditing systems, centralized contractor databases, and real-time verification of project credentials to prevent misuse of public tender processes.
Probe Continues
Authorities have confirmed that the investigation is ongoing and a detailed report will be prepared after reviewing all evidence and documentation. Further action will be taken based on the findings in accordance with applicable laws and procurement rules.
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