E-Paper
Chandigarh excise dept earns ₹398 crore in liquor vend auction
A liquor vend in Dhanas has fetched the highest bid of ₹11.55 crore in the auction held for the 2021-22 fiscal
A liquor vend in Dhanas has fetched the highest ever bid of ₹11.55 crore in the auction held for the 2021-22 fiscal by the Chandigarh excise and taxation department.
The previous record was also set by the same vend in 2019-2020, when it fetched ₹10.78 crore.
All four vends with top bids — Dhanas, Sector 61, Mauli village and Sector 47 — are located near the city’s border with neighbouring states of Haryana and Punjab, where liquor prices are much higher.
“Traditionally, liquor vends located in proximity to Mohali and Panchkula have fetched higher bids as vendors expect to earn more in these areas, as residents of the two satellite cities tend to come to Chandigarh to buy cheaper liquor,” said a department official, requesting anonymity. All four vends have been bought by a single firm – Kler Wines.
The department had received 162 bids electronically for 80 liquor vends put on auction with a combined reserve price of ₹317.31 crore. It earned ₹398.04 crore in the form of licence fees, registering 25% earning over the reserve price. It also received ₹5.67 crore as participation fee.
Originally, the department had offered 96 vends, up from 94 in 2020-2021, but it didn’t receive any bid for 16 vends.
“For the 16 leftover vends, the tendering process will begin on March 22 and the bids will be opened on March 30,” said the official.
To curb the menace of cartelisation and monopolistic practices, a single entity of firms/companies/individuals will be entitled to allotment of up to a maximum of 10 vends.
“An analysis of the successful bidders revealed that no single entity got more than eight vends,” said the official.
In the Chandigarh Excise Policy 2021-2022, the administration decided to keep the licence fee and excise duty on beer and wine unchanged. On the Indian-made foreign liquor (IMFL), the duty has been increased by 6%, which is expected to increase the prices of popular liquor brands by 10-12%.
