33 liquor vends unsold, UT seeks permission to hold another auction

  • HT Correspondent, Hindustan Times, Chandigarh
  • |
  • Updated: Aug 12, 2014 12:18 IST

In spite of holding three auctions, 33 liquor vends of the Chandigarh excise and taxation department still remain unsold.


UT assistant excise and taxation commissioner RC Bhalla said they have moved a file seeking permission for holding another auction for the remaining liquor vends.

This year, the administration has decreased the number of retail sale vends from 217 to 173 vends, out of which 119 were sold in the opening auction held on May 27, while 17 were sold during the second auction held on June 6. Four traders had surrendered their liquor vends. In the third auction on June 19, only eight liquor vends were sold.

Under the new policy to curb the monopolisation of trade by certain liquor contractors in a particular area, the waiting list of tenderers will be prepared. In case a successful bidder surrenders his vend after offering higher bid amount, his earnest money will be forfeited and offer will be given to the second highest bidder.

The new policy announced on May 12 will remain in force for a period of 10 months, commencing from June 1. In the new policy, the administration has increased the earnest money to be paid, along with an application by traders. For vends up to Rs 60 lakh, the earnest money has been increased from Rs 7 lakh to Rs 10 lakh; while in case of vends worth up to Rs 1 crore, the earnest money was enhanced from Rs 10 lakh to Rs 20 lakh.

Similarly, for vends above Rs 1 crore to Rs 1.5 crore, the earnest money saw a jump from Rs 13 lakh to Rs 30 lakh. For shops above Rs 1.5 crore to Rs 2.5 crore, the earnest money has been increased from Rs 25 lakh to Rs 40 lakh.

Last year, the administration had incurred a loss of around Rs 60 crore after it failed to sell 90 vends, out of total of 217, despite repeated attempts. For attracting bidders, the department had even reduced the reserved price of vends by 30%.

 

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