Delhi excise dept extends liquor licenses under new policy for two months

In view of the disruptions caused by the third wave of Covid-19, the Delhi government's excise department has decided to extend the licenses of liquor wholesalers and establishments under a new policy for two months, reported news agency PTI.

The department, in two separate orders, stated that the licensees under different categories can pay a pro-rata fee for the extended period.

"It has been decided by the competent authority to extend the excise policy 2021-22 for a period of two months up to May 31, 2022 for all existing L-15, L-16, L-17, L-19, L-20, L-21, L-28 and L-38 on payment of pro-rata license fee on or before March 15...," it said. 

According to an official of the excise department, the move will help licensees to recover their losses due to the impact on their business by Covid and restrictions imposed due to it. 

Licenses were issued for different categories of wholesale and retail liquor sales for the financial year 2021-22 under the new policy. The licenses required renewal after the end of the fiscal on 31 March.

Liquor stores, as well as bars and restaurants serving alcohol, were forced to shut down due to the Covid third wave in Delhi, and restrictions imposed around mid-January.

As the situation improved, liquor stores were opened, while bars and restaurants resumed operations with half the seating capacity.

Discounts on liquor

This comes after a plea was moved on Wednesday by several liquor vendors challenging the order dated 28 February by which the excise department of the government of NCT of Delhi, has prohibited the issuance or grant of discounts/ rebate/concessions by the retail licensees on alcohol brands.

The government had taken the decision after liquor stores in several areas of Delhi witnessed long queues of people as some outlets offered discounts on different brands of alcohol.

"It has been brought to the notice of the Department that as a result of discounts being offered by the licences through their retail vends, there are instances reported of large crowds gathering outside the liquor stores leading to law and order problems and causing inconvenience to the local population of an area. It is also to be kept in mind that the Covid situation is not yet over and the danger of Covid-19 still persists. Therefore, the huge crowds are likely to aggravate the rise in the Covid cases in Delhi," said the excise department. 

In an implementation of its new excise policy, the Delhi government had earlier set the maximum retail price of each liquor brand and its make, and retailers were free to charge anything within that MRP, but not beyond that.

Following this, many vendors were offering a heavy discount (around 30-40%) on Indian as well as imported brands by adopting competitive pricing as they were also looking to exhaust their stock by the end of March, before their license renews.

This led to liquor stores in several areas of Delhi witnessing long queues of tipplers.

The new excise policy of the Delhi government kicked in November last year with the opening of retail liquor vends. Under the new policy, the government has issued 849 licences for liquor stores across the city. 

With inputs from agencies.