Bids fall short for Gurugram’s auction for 40+ liquor zones

Excise officials confirmed that the department is considering options such as re-tendering or direct negotiations in areas where no bids were received

Over 40 liquor zones across Gurugram’s East and West zones remained unbid during the recent excise auctions, signalling growing discontent within the retail liquor trade over steep reserve prices, shrinking profitability, and policy changes perceived to favour corporate chains.

The auctions come under the shadow of a revamped excise policy approved by the state Cabinet in May. (Parveen Kumar/HT Photo)

According to excise department officials, around 25 vends in East Gurugram and 17 in the West failed to draw bids, despite multiple auction rounds. In total, nearly 30% of the city’s liquor vends are yet to be auctioned, with only 122 out of 185 outlets finding takers so far. Officials said efforts are now underway to sell the remaining 63 vends at a 3% discount in a bid to raise an additional ₹500 crore.

“We’ve already collected ₹2,450 crore in revenue,” an excise official said, requesting anonymity. “But the extraordinary increase in bid prices in the past few years has led to steep reserve prices. Under the current 21-month policy, licensees have to pay a large amount upfront, and that’s become a major hurdle,” the official added.

To be sure, in 2022, 160 vends in Gurugram East were auctioned for ₹568 crore — 31.51% above the reserve price of ₹432 crore. In 2023, auctions across the city generated a record ₹1,563 crore, up 45% from ₹1,079 crore in 2022-23.

In 2024, 324 vends across 162 zones in East and West Gurugram were auctioned via e-tender, earning ₹1,756 crore — 9.4% above reserve. Under the new 2025–27 excise policy, the Bristol Chowk zone alone fetched ₹98.58 crore, over twice last year’s highest bid.

This year, 62 of 83 zones in the West were auctioned, generating ₹1,270 crore against a reserve of ₹1,152 crore. In East Gurugram, 50 zones were auctioned, earning ₹1,270.40 crore — a 5.96% rise over the ₹1,198.90 crore reserve.

The auctions come under the shadow of a revamped excise policy approved by the state Cabinet in May. Among other changes, it has capped ahata (tavern) size to 1,000 sq m from 25,000 sq m, banned live performances at vends, and introduced tighter restrictions on customer engagement. The changes, officials said, aim to curb rogue ahatas that often functioned like unlicensed pubs, particularly in districts such as Gurugram, Faridabad, and Sonipat.

But vend operators argue that these restrictions have made the business model untenable. “The business is no longer sustainable,” said Ankush Goel, a long-time operator. “The government wants a huge investment in one go, but what are we getting in return? Shrinking ahatas, bans on events, and a complete shift of focus to high-end bars.”

Shashank Sangal, owner of the Liquor Forte retail chain, echoed the sentiment. “There is no scope for phased payments. The current model is pushing traditional vendors out and favouring large bar chains,” he said, pointing out that even basic promotions and customer events are no longer allowed at vends but continue in bars and restaurants.

Excise officials confirmed that the department is considering options such as re-tendering or direct negotiations in areas where no bids were received. “The two-year contract is also a factor—many small bidders are unwilling to lock in large sums without flexibility,” the official added.

Retailers also alleged that the policy’s focus on bars has made it harder for standalone vends to compete. Reduced ahata sizes, they say, have slashed footfall, while tighter visibility rules have made it harder to attract new customers.