The criminals who sell adulterated liquor should be hanged in case that causes any deaths. Those who drink and die have done it on their own. The state cannot compensate. Does the government compensate if one jumps off a cliff or falls in front of a running train?
Instead, the government is compensating the family (this acts as an incentive for some more to drink) and allowing the criminals to go scot free.
The system is abused by politicians, and bureaucracy who are hand in glove with criminal vendors.