Delhi HC asks govt for details of liquor brands with fixed MRPs under new excise policy

Justice Rekha Palli, while hearing a plea by 16 retail liquor traders challenging the decision of the government to levy a licence fee from them from November 1, 2021, also asked the government whether registration of any liquor brand has already been done

The Delhi high court on Tuesday asked the Delhi government to disclose details about the number of liquor brands for which the maximum retail price (MRP) has been fixed and those yet to be done under the Delhi Excise Policy, 2021-22.

One of the pleas filed by the 16 retailers, through advocates Tanmaya Mehta, Sanjay Abbot and Ankit Agarwal, said there has been a great delay in initiating the process of registration of brands and fixation of MRP by the Delhi government. (Representational image/ANI)

Justice Rekha Palli, while hearing a plea by 16 retail liquor traders challenging the decision of the government to levy a licence fee from them from November 1, 2021, also asked the government whether registration of any liquor brand has already been done.

The pleas, while seeking to postpone the collection of the licence fee till November 17, have contended that the MRPs have not yet been fixed for liquor brands and hence the licence fee cannot be charged by the Delhi government.

“Before this issue is dealt with, I am of the view that it is necessary of the respondent (Delhi government) to inform the court about the number of brands for which the MRPs have been fixed and those which are left (to be fixed) along with dates. Also inform whether registration of any/ number of brands has already been done,” the court said.

“This means people of Delhi will not get liquor. Why are you not fixing the MRP of brands?” the court further said.

Senior advocate Maninder Singh, representing the liquor retailers, argued that the government cannot direct the petitioners to pay the licence fee with effect from November 1 as the payment of said fee depends on commencement of business. He said the authorities have not fixed the MRP for most liquor brands and hence have no right to direct retailers to pay the fee.

One of the pleas filed by the 16 retailers, through advocates Tanmaya Mehta, Sanjay Abbot and Ankit Agarwal, said there has been a great delay in initiating the process of registration of brands and fixation of MRP by the Delhi government.

It claimed that until October 30, not even a single brand had been registered within Delhi under the new excise policy, nor had the MRP been fixed for various liquor brands.

It said the process for determination of MRP for retail sale is a time consuming exercise and if the scheduled date of commencement of business is November 17, as specified by the government, it is a complete breach of obligations on the part of the authorities in delaying the registration of brands and determination of MRP.

This, however, was disputed by senior advocates Abhishek Manu Singhvi and Rahul Mehra, appearing for the Delhi government, who said the MRP of most of brands is already fixed and since the fixation of MRP is an ongoing process, the government was not responsible for any delay.

They sought time from the court for taking instructions on the petition.

The petitioners are successful bidders of L-7Z (zonal licence for retail vend of Indian liquor and foreign liquor) and L-7V (retail vend of Indian liquor, foreign liquor in a zone).

The pleas also sought to restrain the government from demanding the sums of money in the form of licence fees or security deposit and also to direct the authorities not to levy or demand licence fees from successful bidders until the government performs its own obligations under the tender terms and conditions and the Delhi Excise Policy 2021-2022.

The matter will next be heard on November 11.