Current excise regime set to continue till July-end: Delhi govt

Excise officials were then tasked with preparing a new liquor policy for the city, which was to be ready by September 2022. However, the new rules are yet to be framed, officials said

The Delhi government is set to extend the existing excise policy, which expires on March 31, till at least the end of July as the framing of a new liquor policy has been delayed. Officials attributed the delay in the new rules to the probe into alleged irregularities in the 2021-22 policy and the subsequent arrest of former deputy chief minister and excise minister Manish Sisodia in connection with the case.

The 2021-22 excise policy, which was introduced on November 17, 2021, aimed to revitalise the city’s flagging liquor business by replacing a sales-volume based regime with a licence fee one for traders, and promised swankier stores, but was replaced by the 2020-21 regime on September 1, 2022. (Representative image/HT Archive)

An excise official, on condition of anonymity, said the department has submitted a report recommending the extension of existing liquor licences to the state. “The extension of the existing licences can be done according to laid down rules. The licensees are required to deposit a proportionate licence fee to the excise department to get their licences extended. It will ensure that there is no disruption in the supply of liquor in the Capital,” said the official.

A Delhi government official, who declined to be named, said, “Since the new policy has not been framed yet, the existing policy is going to be extended by four-five months.”

Officials of the LG office did not comment despite requests.

The 2021-22 excise policy, which was introduced on November 17, 2021, aimed to revitalise the city’s flagging liquor business by replacing a sales-volume based regime with a licence fee one for traders, and promised swankier stores, but was replaced by the 2020-21 regime on September 1, 2022 after lieutenant governor VK Saxena recommended a Central Bureau of Investigation probe into alleged irregularities in the policy.

Excise officials were then tasked with preparing a new liquor policy for the city, which was to be ready by September 2022. However, the new rules are yet to be framed, officials said.

Excise officials involved in the process to frame the new policy said they are currently treading a fine line, trying to ensure that Delhi liquor business gets revitalised but at the same time, they do not fall foul of the law.

“The situation is fluid, and no one wants to frame a new excise policy because of the probe going on… We want to make sure that the policy is fool-proof and there are no gaps, which may land us in trouble later,” said one official, on condition of anonymity.

A second excise official said CBI sleuths frequent the department as part of the ongoing probe into the excise policy case. “The officials who are on the job to frame the policy are closely monitoring the ongoing CBI probe to make sure that they keep away the controversial parts of the now-scrapped policy,” said the official.

Industry experts meanwhile said that the Delhi government should ensure that the uncertainty prevailing over the excise regime is addressed.

Vinod Giri, director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said: “What the industry seeks most is a stable policy environment, an essential precondition for business planning. Short-term extensions at best give temporary business continuity. Uncertainty regarding the future excise policy is affecting investment in the Delhi market. Companies are hesitant to stock up supply pipelines as the matter of left over stock from past policy transitions is still unresolved.”

Priyank Sukhija, the Delhi chapter head of National Restaurants Association of India (NRAI), said the current liquor policy in the Capital is outdated, and leaves restaurant/bars owners in the city at a disadvantage in comparison to neighbouring cities in Haryana and Uttar Pradesh. “Bars can operate till 6am in Gurugram and till 2am in Noida, but in the Capital, they are not allowed to operate after 1pm... We are eagerly waiting for a new policy, which is liberal and progressive,” said Sukhija.