Haryana: New excise policy spells out curbs for ahatas

One of the biggest changes is a crackdown on ahatas, with a new cap of 1,000 square metres per establishment. Live music and other performances are now banned at these venues, and operating hours have been curtailed—closing time has been advanced from 8am to 4am

Gurugram:The Haryana cabinet on Monday approved a sweeping new excise policy for 2025–27 aimed at reining in aggressive liquor marketing and bringing taverns — ahatas — under stricter control. The policy introduces major reforms designed to curb unlawful commercialisation of liquor zones, plug revenue leakages, and restore regulatory grip over a sector that has long operated in grey areas.

The move comes after years of citizen complaints, investigative reports by HT, and widespread regulatory violations—especially in Gurugram and Faridabad—where ahatas were found hosting unlicensed live shows, operating commercial kitchens, expanding into multi-storey entertainment spaces. (PARVEEN KUMAR/HT)

To restrict aggressive marketing, the government has banned liquor signage and advertisements near highways and mandated that vends be fully hidden from public view. Meanwhile, the minimum distance between liquor shops and sensitive sites such as schools, colleges, religious places, and bus stands has been doubled from 75 metres to 150 metres.

One of the biggest changes is a crackdown on ahatas, with a new cap of 1,000 square metres per establishment. Live music and other performances are now banned at these venues, and operating hours have been curtailed—closing time has been advanced from 8am to 4am.

The move comes after years of citizen complaints, investigative reports by HT, and widespread regulatory violations—especially in Gurugram and Faridabad—where ahatas were found hosting unlicensed live shows, operating commercial kitchens, expanding into multi-storey entertainment spaces, and masquerading as pubs and lounges despite holding licences only for retail liquor sale.

This is the first time Haryana has placed a spatial limit on ahatas, which until now had no defined boundaries—allowing owners to expand their operations unchecked, often encroaching onto public land and green belts. “Fee structures have also been revised upward by over 33%,” said Amit Bhatiya, deputy excise and taxation officer (east), Gurugram. “This will discourage illegal expansion and ensure the government recovers appropriate dues.” Licence fees for ahatas are now pegged to the zone fee: 4% in Gurugram, 3% in Faridabad, Sonipat, and Panchkula, and 1% in other districts.

To enforce the ban on visible marketing, liquor vends violating signage rules will face escalating fines— ₹1 lakh for the first offence, ₹2 lakh for the second, ₹3 lakh for the third—after which their licences will be revoked. This move targets a key concern raised in past HT investigations that showed illuminated billboards and roadside banners luring customers in violation of Supreme Court guidelines banning liquor promotion near highways.

Visibility restrictions go a step further, now requiring that all liquor vends and ahatas be entirely concealed from both national and state highways—a reversal of the long-standing practice where many operated in full view of passing traffic.

Supreme Court advocate and activist Rajeev Yadav, who has led a campaign against illegal tavern operations and encroachments on agricultural land, welcomed the reforms.

“I submitted detailed recommendations to the excise department pointing to ₹25,000 crore in annual VAT and CLU losses,” he said. “Key suggestions like capping ahata size, banning signage, and restricting highway visibility have now been implemented.”

The policy also addresses rural alcohol access. In villages with populations under 500, liquor shops will no longer be permitted. Officials confirmed that 152 such shops across more than 700 villages will be shut down. This, officials said, reflects an effort to strike a balance between revenue generation and public health in remote areas.

But perhaps the most damning reflection on the previous policy lies in how widely *ahatas* had defied basic norms. According to officials and citizens, many operated from multiple floors, built valet parking on green belts, and charged bar-style rates—all while failing to pay GST or acquire land-use and fire safety clearances. “These taverns were never meant to be nightclubs,” said Yadav. “But in Gurugram, we found many offering private cabins, DJs, and overpriced menus, running like commercial entertainment hubs while avoiding basic regulation.”

Jitender Dudi, deputy excise and taxation commissioner (west), Gurugram, said, “This has gone through extensive review. The size cap and crackdown on visibility were overdue reforms… Operators were exploiting regulatory gaps to run full-fledged commercial establishments. This new policy is a step toward restoring accountability.”

Still, the overall number of liquor shops remains unchanged—2,400 across 1,200 zones—suggesting that while the state isn’t reducing availability, its focus has shifted decisively from maximising revenue to enforcing compliance and fairness.

With the monsoon approaching and public sentiment turning against unchecked misuse of excise laws, officials emphasised the need for strict enforcement. “We now have the tools in the policy,” Bhatiya said. “The real challenge will be ensuring these norms aren’t just on paper. Regular inspections, financial audits, and citizen vigilance will be crucial.”