Delhi allows private shops to offer discounts up to 25% on liquor MRP
In February, the excise department had discontinued rebates and concessions on the sale of liquor in Delhi, citing violations of the Delhi Disaster Management Authority (DDMA) guidelines related to Covid-19 and "distortion of market" due to "unregulated discounts" offered by some licensees.
The Delhi government's excise department has permitted private shops to offer discounts on the maximum retail price (MRP) of liquor. The order comes a month after the Delhi government prohibited discounts and schemes being offered by liquor stores, citing violations of Covid-related guidelines and unhealthy market practices.
News agency PTI, citing an order issued by the excise commissioner of Delhi on Friday, stated that the government has recommended that a rebate or discount up to 25 per cent of the MRP will be allowed on the sale of liquor in jurisdiction of NCT of Delhi with strict compliance of Rule 20 of the Delhi Excise Rules, 2010.
"... the Commissioner, Excise, under Section 4 of the Delhi Excise Act directed that the licensees can offer discount or concessions up to a maximum of 25 per cent of the MRP of liquor sale in Delhi," the order was quoted as saying.
“The licensees will strictly abide by terms and conditions of the license and if any violation is noticed, then strict penal action will be taken against them under the Delhi Excise Act and other rules,” the order further said.
"However, in overall public interest, the government reserves the right to withdraw the discount at any time. The government will not be under any obligation whatsoever and it will be non-binding on the government to allow discount on sale of liquor in Delhi," it added.
On February 28, the excise department had discontinued rebates and concessions on the sale of liquor in Delhi, citing violations of the Delhi Disaster Management Authority (DDMA) guidelines related to Covid-19 and "distortion of market" due to "unregulated discounts" offered by some licensees.
With liquor shops giving discounts and offers like 'buy one, get one free', crowds were seen thronging liquor vends in many parts of the city in February. Some law and order issues were also reported with police being called in to control mobs.
As a result of liquor stores slashing prices of different brands of alcohol by up to 40 per cent, many people had started purchasing and hoarding large quantities fearing the schemes may be withdrawn after the end of the current financial year in March.
The excise department had withdrawn the discounts and schemes being offered by the licensees citing law and order problems and inconvenience to locals. Some licensees had approached the Delhi High Court against this order.
(With agency inputs)