Liquor sales in Delhi doubled last month, govt tells high court

On Thursday, the Delhi government, while opposing the pleas said that it has ended discounts on liquor as it was promoting drinking in the city beyond permissible limit and creating monopoly in the market

The state government on Friday informed the high court that 24.50 million litres of liquor were sold in the city in February -- almost double the average monthly sale of 13.2 million litres in 2019-20, as it explained why it ordered the withdrawal of discounts being offered by the liquor vends in the Capital.

The affidavit was filed on a bunch of pleas by liquor license holders that challenged a February 28 order by the Delhi government to do away with discounts on liquor. (Representative image/Getty)

In an affidavit filed before Justice Kameswar Rao, the Delhi government said the consumption pattern cannot increase manifold overnight on account of individual consumption as people will not start drinking double their usual capacity. The government also said that in view of the massive spike in the sales the chances of hoarding cannot be ruled out.

It said, “The government cannot be privy to such sales behaviour that is contrary to the reforms brought by the city government where nominal duty has been levied on the import of liquor.”

The government said that consumption was more or less following a uniform trend in December and January. It added that a few licensees “having huge financial wherewithal” started giving 50% or more discount from their approximate retail margin of around 60%-65%, and lured people to buy more liquor than required for personal consumption.

The affidavit was filed on a bunch of pleas by liquor license holders that challenged a February 28 order by the Delhi government to do away with discounts on liquor. The petitioners contended that their sales have dipped due to the decision to do away with discounts and people were rushing to the neighbouring cities for cheap liquor, causing them losses of crores.

On Thursday, the Delhi government, while opposing the pleas said that it has ended discounts on liquor as it was promoting drinking in the city beyond permissible limit and creating monopoly in the market. Senior advocate Abhishek Manu Singhvi, representing the Delhi government, said that “Delhi could not become a city for promoting drunkenness through the measure of discount”.

The court, while issuing notice to the government, posted the matter for further hearing on Monday.