Delhi ban on liquor discounts to continue. High court declines stay

The Delhi government bar on stores offering discounts was issued on February 28 on the ground that it was leading to crowding at the stores, promoting drinking and leading to unhealthy practices by some liquor licence holders.

NEW DELHI: The Delhi High court on Tuesday refused to halt the Aam Aadmi Party government’s decision to withdraw discounts on liquor in the national capital.

People crowding at a liquor shop after it dropped prices following Delhi Government's new excise policy (ANI)

“I am dismissing the applications… A detailed order will be uploaded, “ Justice V Kameswar Rao said. The high court, which received multiple requests from liquor licence holders against the city government’s bar on offering rebates to customers, had reserved its decision on Monday.

The applications were filed along with a bunch of pleas by new liquor licence holders against the February 28 order by the Delhi government that prohibited hefty discounts on liquor.

On March 25, the court will take up the petitions that want the court to quash the Delhi government order.

The petitioners contended that their sales have dipped due to the decision to do away with discounts and people are rushing to the neighbouring cities for cheap liquor, thus causing them losses of crores on a daily basis. They also the government order was arbitrary and against Delhi’s new excise policy.

The government responded that the initial rule allowing discounts was leading to crowding at the stores, promoting drinking and leading to unhealthy practices by some licence holders to create a monopoly in the market.

As an example, the government said the liquor shops in Delhi sold 24.50 million litres of liquor in the city in February -- almost double the average monthly sale of 13.2 million litres in 2019-20 - and explained this increase to rebates.

The government said that the increase in sales due to discounting cannot be logically attributed to only an increase in consumption as the average sales during the discounting period is showing a significant spike and the chances of illicit hoarding, black marketing and interstate movement of liquor cannot be ruled out.

Several stores in the city had lately offered a wide range of discounts (of 35% in some instances, while some stores handed out buy-one, get-one offers on some brands), with instances of crowding reported in several areas.