No discounts on liquor? Here's what Delhi govt said in its latest order

Big blow to liquor customers in Delhi as the city's excise department has ordered the discontinuation of discounts on MRP of alcohol. The Delhi Excise Department decided after several liquor stores in the city witnessed long queues leading to law and order problems. Besides, the excise department also stated that the Covid situation persists, and luring customers by giving heavy discounts will not help in containing the virus.

According to the excise department, "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 persists. Therefore, the huge crowds are likely to aggravate the rise in the Covid cases in Delhi".

The department, in an order, directed licensees to stop giving concessions, rebates, or discounts and warned of action against shops offering them. Further, the Delhi government said it is discontinuing the discount as it leads to unhealthy market practices deployed purely for short-term business gains by some of the licensees and is leading to the distortions of the market.

The discontinuation of discounts on liquor will promote healthy competition in the market and will promote consumer choice, the excise department added. "The discounting of this nature was not the objective of the government while permitting the discounts in the new Excise Regime," it said.

With liquor shops giving discounts and offers like 'buy one get one free', crowds were seen thronging the vends. Some law-and-order issue was also reported and police were called to control the mob.

In Jagatpuri, where a liquor store denied discount, the people had recently resorted to throwing stones, broke glass panes of the shop, and injured the staffers.

The liquor stores in Delhi slashed prices by up to 40%, and therefore many people started purchasing and hoarding large quantities fearing the schemes may be withdrawn after the end of the current financial year. 

Some of the retailers in the national capital are offering foreign brands cheaper than Gurugram. For instance, a few Delhi liquor stores were selling the bottle of Chivas Regal (12 years) for ₹1,890 whereas, in Gurugram, the same brand is being sold at ₹2,150 with a discount of ₹150 per bottle on purchase of three bottles. The MRP of Chivas Regal is ₹2,920 in Delhi.

Delhi Government approved the Excise Policy 2021-22 along with the terms and conditions for the grant of various categories of licences last year. According to the tender document issued by Excise Department for granting 849 retail liquor licences, the licensees are free to give rebate/discount/concession on the maximum retail price of liquor fixed by the Excise Commissioner.