234 liquor stores added since switch to 2021 rules, says Delhi govt

Delhi now has 584 liquor stores, but consumers still face problems with poor supply and limited brand selection.

The number of liquor stores in the Capital has increased from 350 in September 2022 — when the Delhi government withdrew the 2021-22 excise policy and switched back to the previous 2020-21 regime — to 584 in June, excise department officials aware of the matter said.

A Delhi government liquor shop at INA Market. (Sanjeev Verma/ HT Photo)

While switching back to the previous excise regime, the department had said that the number of liquor stores in the city would be doubled from 350 to 700. On Saturday, a senior official, declining to be named, confirmed that they are still working to meet the target.

“Our target is to open 700 liquor stores. Most of the 584 stores, including the 234 new ones, are bigger in size as compared to the old government-run liquor stores, and many of them have been opened in malls and commercial complexes as well,” he said, adding that Delhi sees the sale of around 1.3 million bottles of alcohol every day.

However, despite the increase in the number of liquor vends, consumers still face several problems in purchasing alcohol, with many complaining about poor supply as well as a lack of selection of brands. Officials also admitted that due to these issues, the Capital is losing customers to the neighbouring cities of Gurugram and Noida.

Many brands are not available in Delhi because the excise department rejected the application of French spirits company Pernod Ricard, Indospirits, and Brindco for a sale license over the ongoing investigations in the excise policy case, officials said, adding that Pernod Ricard is one of the largest liquor companies in the world and offers hundreds of premium brands like Chivas Regal, 100 Pipers, Glenlivet, Absolut, and Jacob’s Creek.

Another excise department official said around 1,000 brands have been registered in the city so far and claimed that barring the companies whose license were rejected due to ongoing investigations, almost all other brands are available in the Capital.

Nipun Sabharwal, an IT professional who lives in Naraina, said due to instability in the Capital’s excise regime, many brands are unavailable in Delhi for a long time. “We have to depend on neighbouring cities to buy our favourite brands,” said Sabharwal.

The 2021-22 excise policy aimed to replace a sales-volume based regime with a licence fee-based one for traders. The plan, however, came to an abrupt end, with lieutenant governor VK Saxena recommending a Central Bureau of Investigation probe into alleged irregularities, which ultimately resulted in the policy being prematurely scrapped and being replaced by the 2020-21 regime.

The Capital’s retail liquor space is currently operated by the Delhi government through four separate agencies — the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Delhi Tourism and Transportation Development Corporation (DTTDC), Delhi Consumer’s Cooperative Wholesale Store (DCCWS), and Delhi State Civil Supplies Corporation Limited (DSCSC).

No private vends are allowed to operate in the city.

The excise official quoted above said that under the current regime, all liquor stores are located in markets with high footfall, and in areas that are well-connected with transportation networks. “The floor areas of each liquor store are above 300 square feet and some of them are also located in up to 2,000 square feet areas. In the liquor stores, the brands are on display and some of them also offer walk-in facilities,” said an official.

An excise official said a walk-in facility is available at the liquor store in Saket Square Mall and also at the liquor store located in A Block of Connaught Place. “A 2,000 square feet liquor shop is operational in N Block of Connaught Place but permitting walk-in facility will take some time because of the ongoing renovation work,” said the official. “The liquor store located in RG Square Mall in Patparganj also offers a walk-in facility,” said the official.

A Delhi government official said there are several criteria that must be met before a liquor store is opened. “One of the biggest challenges to opening liquor stores is getting suitable places on rent for opening liquor stores. The place should be located in a commercial area, should have high footfall, well-connected with the public transport network, over 300 square feet space should be available, and parking space should also be available, there should be adequate space in front of the liquor stores so that the crowd at the store does not lead to congestion,” he said.

The official added that they rejected several suitable places for opening liquor stores because they were located within 100 metres of religious places or educational institutions or hospitals. “The site is finalised only when it checks most of the boxes in the checklist. It has been one of the main reasons behind the delay in opening several liquor stores,” the above quoted official said.

New policy

The Delhi government in March 2023 extended the existing excise policy (2020-21), which was going to expire on March 31, for six more months till September 30 to ensure continuity and make sure that there are no liquor supply disruptions in the Capital. The excise department was asked to prepare a new policy to replace the controversial policy within a month (September 2022 end), but the process has been delayed due to various reasons including the ongoing probe and the arrest of former deputy chief minister Manish Sisodia. An official said the preparation of the excise policy is still going on.

Vinod Giri, director general, Confederation of Indian Alcoholic Beverage Companies (CIABC), said more liquor stores are required to improve buyers’ experience. “The opening of liquor stores in the Capital under the currently in-force excise policy has been very slow. In nearly 10 months the four agencies have managed to open only 584 liquor stores. The agencies had targeted to open around 700 liquor stores. Delhi needs more liquor stores to improve the buyer’s experience. Poor buyers experience will affect the growth of business because it will prompt people to buy liquor from neighbouring cities,” said Giri.