Delhi govt extends excise policy till September 30

The existing policy (2020-21) has been extended as a new liquor policy is yet to be framed, with officials attributing the delay to the ongoing probe into alleged irregularities in the now scrapped 2021-22 excise regime.

The Delhi government has approved the extension of the state excise policy, which expires on March 31, for six months till September 30 to ensure the continuity of liquor supply in the Capital, officials aware of the development said on Wednesday.

Crowds outside a liquor shop in New Delhi. (Representative image/HT Archive)

The existing policy (2020-21) has been extended as a new liquor policy is yet to be framed, with officials attributing the delay to the ongoing probe into alleged irregularities in the now scrapped 2021-22 excise regime, and the subsequent arrest of former deputy chief minister Manish Sisodia in connection with the case.

On Wednesday, a Delhi government official said that chief minister Arvind Kejriwal has approved the extension of the excise policy 2020-21 for six months. The official said at present, five festivals have been declared dry days in Delhi — Mahavir Jayanti (April 4), Good Friday (April 7), Eid-ul Fitr (April 22), Buddha Purnima (May 5), and Eid-ul-Zuha (June 29) — and other such dates will be declared at a later time.

“The existing excise policy, which was set to expire on March 31, 2023, will now be valid until September 30, 2023. In addition to the extension of the existing policy, the government has directed the excise department to formulate a new excise policy at the earliest,” the government said in a statement.

An excise official said the department will soon issue a formal order, declaring the extension of the policy. “All the licensees who want to continue their businesses will be required to deposit a 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. The policy was extended in March as well, and most of the licensees deposited proportionate licence fees and got their licences extended with the same terms and conditions,” said the official.

The 2021-22 excise policy, which was introduced on November 17, 2021, aimed to revitalise the city’s flagging liquor business, but was scrapped and replaced with the old regime on September 1, 2022 after lieutenant governor VK Saxena recommended a Central Bureau of Investigation (CBI) probe into alleged irregularities in that policy.

Excise officials were then asked to prepare 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. They said they are treading a fine line, trying to ensure that the liquor business is revitalised but at the same time, they do not fall foul of the law.

On Tuesday, HT reported that the excise department had submitted a report to the Delhi government, recommending the extension of the existing policy as the framing of a new one had been delayed.

Industry experts, meanwhile, said the excise regime should not be shadowed by uncertainty. Vinod Giri, director general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said, “The industry can progress only when they function in a stable policy environment. The stability helps in proper business planning. The short-term extensions do ensure business continuity, but uncertainty is set to hit investment and employment opportunities in the industry.”

Naresh Goyal, president of the Delhi Liquor Trade Association — a union of private liquor traders who operated 260 liquor stores under the 2020-21 regime, but were forced to shut shop after the 2021-22 policy was introduced — said the Capital needs a progressive policy to ensure the growth of business as well as higher revenue for the state government. “Currently, private players are not allowed to get licences, and all liquor stores are being run by government agencies. It leaves the excise business of the Capital at disadvantage as compared to neighbouring cities, which have stable and progressive excise policies,” said Goyal.