The shop in the village of Adampur began selling the alcohol Thursday, Sky News reported.
On Friday, 32 people who bought and drank the tainted booze were dead and 50 others were in the hospital.
Authorities have arrested the shopkeeper, whose son was among the dead.
Eight state government officials and four police officers have also been suspended from their posts as part of an investigation into the incident. The officials have been accused of negligence for allowing the bootleg alcohol to be sold.
Home-brewed alcohol is common in India, as many shopkeepers cannot afford licensed alcohol. Harsh chemicals are often added to the brews to make them more potent, Sky News said.
Couple mistakenly served bag of cash at McDonald's drive-thru
Gal Gadot cast as Wonder Woman for 'Batman vs. Superman'