The UT excise and taxation department received a total of 120 tenders for 173 liquor vends to be put up for auction scheduled to be held on Tuesday (May 27) at the Government Medical College and Hospital in Sector 32 at 10am.
Of the 173 vends up for sale, 98 vendors have applied for Indian Made Foreign Liquor (IMFL) vends of the 123 of these available, while 22 have applied for country vends out of total of 50 vends under the category. There were no takers for as many as 53 vends. Under the new policy, the administration has decreased the number of retail sale vends from 217 to 173 vends, 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. In the new excise policy, the UT has made an attempt to bring the liquor prices on a par with Punjab, thus pushing the liquor rates higher in the city. In the new policy, the administration has increased the ear nest money to be paid along with application by the traders.
For vends up to Rs 60 lakh, the ear nest 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 has been enhanced from Rs 10 lakh to Rs 20 lakh.
Similarly, for vends above Rs 1 crore to Rs 1.5 crore, the ear nest money has been increased 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.
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 of fer will be given to the second highest bidder.
Last year, administration had incurred a loss of around Rs 60 crore after it failed to sell as many as 90 vends, despite repeated attempts. For attracting bidders, the department had even reduced the reserve price of vends by 30%.