No takers for 18 liquor vends in Chandigarh even after 18th round of auctions

It is for the first time in the city’s history that the reserve prices have seen such a massive cut during liquor vend auctions. This was also the fifth consecutive auction where the department has been unable to attract any bidders. Previously, no bidders had come forward even during the 5th, 8th, 9th, and 12th rounds. The first auction was held on March 15, where a total of 95 vends were offered for bidding.

The UT excise and taxation department’s move of slashing the reserve price of 18 of its remaining liquor vends by 50% failed to evoke the desired response, with all the vends going unclaimed even after the 18th round of auctions held on Tuesday.

Chandigarh excise and taxation department’s move of slashing the reserve price of 18 of its remaining liquor vends by 50% failed to evoke the desired response, with all the vends going unclaimed even after the 18th round of auctions held on Tuesday. (HT File)

It is for the first time in the city’s history that the reserve prices have seen such a massive cut during liquor vend auctions. This was also the fifth consecutive auction where the department has been unable to attract any bidders. Previously, no bidders had come forward even during the 5th, 8th, 9th, and 12th rounds. The first auction was held on March 15, where a total of 95 vends were offered for bidding.

The department has been slashing the reserve price by around 5% since round three, which has now reached up to 50%.

Notably, the UT performs poorly every year, with liquor contractors attributing it to a lopsided tax structure compared to neighbouring Punjab. Officials admit this is true, but the department has failed to address the issue. Last year, three out of the 96 vends on offer remained unsold. In 2022-23, the UT excise and taxation department was able to sell 93 out of the total 96 liquor vends after conducting seven auctions.

Blaming the Punjab policy for the losses, UT excise commissioner Vinay Pratap Singh said, “We suffered a loss due to the liquor policy of Punjab. We will make a decision regarding the remaining liquor vends now.”

Another senior officer of the excise department said, “We have suffered a huge loss for the first time and will hold one more auction before making a decision.”

Darshan Singh Kler, owner of Kler wines, who bought six liquor vends in the auction held on March 15, said, “UT’s excise policy is completely responsible for the debacle. I have failed to understand why they are so desperate to hold auctions. They should stop it and concentrate on the vends that are already sold.”

For the financial year 2023-24, the department has set a revenue target of ₹830 crore from liquor vends’ licence fees but has so far, collected only around ₹500 crore.