Delhi govt discontinues discounts on MRP of liquor to contain rush at stores

Several stores in the national capital witnessed a huge rush as liquor retailers offered discounts up to 35 per cent to increase the sale of bottles.

The Delhi government on Monday decided to discontinue discounts on the maximum retail price (MRP) of liquor at stores. The decision comes at a time when several stores in the national capital witnessed a huge rush as liquor retailers started offering massive discounts to increase sales.

People stand in a queue outside a liquor store as prices of liquor were reduced at New Delhi Railway Station, on Sunday. (ANI Photo)

"It has been brought to the notice of the department that as a result of the discounts being offered by the licences through their retail vends, there are instances reported of large crowds gathering outside the liquor stores leading to law and order problem and causing inconvenience to local population of an area," an order from the excise department read.

“It is also to be kept in mind that the Covid situation is not yet over and the danger of Covid-19 still persists and therefore the huge crowds is likely to aggravate the rise in cases in Delhi," it added.

The Delhi government further said such discounting was leading to "unhealthy market practices deployed purely for short term business gains" by some licencees in the capital.

“Licensees are seen indulging in various promotional activities through social media and banners/hoardings being placed outside the stores which is a non-permissible activity under the Delhi Excise Act, 2009 and Delhi Excise Rules, 2010,” the excise department said, adding this was not the intent while allowing discounts under the new excise regime.

Liquor stores in several parts of the city were seen offering discounts up to 35 per cent on certain IMFL brands.

With the introduction of the new excise policy in November last year, liquor stores in Delhi have been under pressure to exhaust their stock by the end of March ahead of the renewal of their licences in the new financial year.