Auction for unsold liquor vends on June 6 | chandigarh | Hindustan Times
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Auction for unsold liquor vends on June 6

chandigarh Updated: May 31, 2014 13:30 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The UT excise and taxation department will hold an auction for the remaining 54 liquor vends on June 6.

The opening auction of 173 liquor vends held on May 27 evoked a moderate response with only 119 vends finding takers for the financial year 2014-15.

A total of 173 vends, 123 of Indian made foreign liquor (IMFL) and 50 country, were put under hammer out of which only 119 vends - 91 IMFL and 28 country liquor - were sold.

There were no takers for as many as 54 vends - 32 IMFL and 22 country. The department collected Rs 92.32 crore as revenue on the opening of financial bids, which was around 16% higher than revenue generated in the last financial year.

Under the new policy, the administration has decreased the number of retail sale vends from 217 to 173, which will be granted license for a period of 10 months.

The new policy announced on May 12 will remain in force for a period of 10 months commencing from June 1.

The administration increased the earnest money to be paid along with application by traders in the new policy.

For vends upto Rs 60 lakh, earnest money was increased from Rs 7 lakh to Rs 10 lakh, while in case of vends worth up to Rs 1 crore, it was enhanced from Rs 10 lakh to Rs 20 lakh.

Similarly, for vends above Rs 1 crore to Rs 1.5 crore, earnest money saw a jump from Rs 13 lakh to Rs 30 lakh, and for shops above Rs 1.5 crore to Rs 2.5 crore, it was 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 as many as 90 vends out of the total 217 despite repeated attempts.

For attracting bidders, the department had even reduced the reserve price of vends by 30%.