Delhi govt proposes annual licence for party venues to serve liquor

New Delhi The Delhi government has proposed introducing a new annual licence system allowing banquet halls, farmhouses, motels and other such party venues to serve liquor at events, like it is done in hotels

New Delhi

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The Delhi government has proposed introducing a new annual licence system allowing banquet halls, farmhouses, motels and other such party venues to serve liquor at events, like it is done in hotels.

The government report on the Delhi Excise Policy, 2021, has also recommended doubling the one-time P10 licence to ₹10,000 for hosting in-house parties — a permit which is extensively applied for by the general public to serve alcohol in private parties hosted at home or any other non-licenced premise.

The report, seen by HT, talks about starting a new liquor licence specifically for banquet halls, farmhouses, party lawns and other such venues, the fee for which will depend on the carpet area of the premise. For venues having a carpet area of up to 5,000 square feet, the annual liquor license fee will be ₹5 lakh, ₹10 lakh for those above 5,000 sqft and up to 15,000 sqft and ₹15 lakh for places having more than 15,000 sqft area.

“No separate P10 license will be required at any event being conducted at these venues once the yearly licence is acquired. The area will be calculated basis the entire usable carpet area, which is leased out for events and gatherings. In case of venues with multiple floors, the carpet area of each floor will be calculated,” read the report, prepared by a group of ministers, headed by deputy chief minister Manish Sisodia.

It further stated that venues that conduct multiple events will have to take this mandatory licence in order to serve liquor on their premises.

Delhi has around 300 banquet halls, and most of them have multiple halls within their premises taking the total number of halls to over 1,000.

But the government has also not completely done away with P10 licence as people who are organising a relatively smaller party of, say, about 50-100 people, may not want to book a banquet hall or such formal set up.

“For an in-house party or any function in any community centre, the P-10 fee will be applicable at Rs.10,000/- irrespective of the number of guests. To serve liquor in banquet halls, party places, farmhouses, wedding/ party/event venues, the one-time P-10E licence fee will be ₹50,000/- per event, if the said venue does not hold a regular annual licence,” the report said.

At present, P10 licence can be obtained on payment of Rs. 5,000/- to serve liquor in any party, function, marriage and so on at non-licenced premises, anywhere in Delhi, excluding public parks. The existing P10 licence fee for motels, banquet halls and farmhouses is ₹15,000 per event.

Ramesh Dang, president of Community Welfare Banquet Association of Delhi said the move is in favour of owners of such venues. But he said it could turn out to be an expensive proposition for the general public or the hosts of the parties.

“Even though they have increased the P10 license fee by at least 233%, the move is still favourable for us. This is because all banquet halls, farmhouses and other such party venue owners will shift to the annual licence system as it is a cheaper and more hassle-free option. It will allow us to charge for alcohol and the service provided to serve it — which means the cost of alcohol will be relatively more expensive at our venues, just like it is charged in hotels. The cost will be higher than the MRP of the bottles at our venues not only because of the service provided, but also because we will have to recover the annual licence fee paid to the government,” he said.

Mandeep Singh, the owner of Bel-La Monde hotels private limited, which also owns several farmhouses and banquet halls, said the process will now be tension free for party hosts.

“Many banquet halls or venue owners at present ask the hosts to themselves arrange the P10 licence and get their liquor bottles from retail stores at MRP. This licence is available online or can also be taken from an authorised liquor store from where the bottles are being procured. Most people are unaware of the procedure and used to feel hassled by the unnecessary paperwork. So, now those who are willing to pay slightly more, can just pay us and get the entire liquor part of the party or event taken care of by us,” said Singh.