E-Paper
Chandigarh’s 36 liquor vends still unsold after second round of auction
The second round of auction was organised on Friday after only 51 of the total 97 vends could be allotted in the first attempt on March 7
UT excise and taxation department’s hopeful attempt to allot the 46 unsold liquor vends came a cropper, with only 10 vends findingtakers.
The second round of auction was organised on Friday after only 51 of the total 97 vends could be allotted in the first attempt on March 7.
Against the reserve price of ₹36.79 crore for the 10 sold vends, the department fetched just ₹38.18 crore, resulting in a shortfall of ₹196 crore.
From the auction of 51 vends on March 7, the department had earned ₹243 crore against the reserve price of ₹218 crore.
Even in financial year 2023-24, the department had failed to sell 18 of city’s 95 liquor vends even after 20 auctions with multiple reserve price cuts. In the very first auction in March 2023, the department found few takers, selling just 43 of the total 95 liquors, a trend that continued through the year, leading to a revenue deficit of ₹150 crore against the goal of ₹830 crore.
On Friday, the liquor vend in Maloya village received the highest bid of ₹5.13 crore against the reserve price of ₹5.03 crore, followed by the liquor vend at Mauli Jagran Colony that was auctioned for ₹4.55 crore against the reserve price of ₹4.55 crore. Up for grabs with a reserve price of ₹4.32 crore, the liquor vend in Sector 24-C bagged the third highest bid of ₹4.51 crore.
Darshan Singh Kler, president of the Wine Contractors’ Association, said the department will most likely witness a repeat of last year’s challenges due to the high excise duty and VAT.
Also, the 2024-25 Punjab Excise Policy was far more lucrative with the draw of lots system and introduction of small groups with 1% excise duty and 1% VAT, he added.
However, a senior officer of the excise department said they were hopeful of allotting all vends through the upcoming rounds of auction. For the first time, in FY 2024-25, UT has decided that any liquor vend remaining unsold will be run by the Chandigarh Industrial and Tourism Development Corporation Limited (CITCO).
