Delhi HC refuses to stay new excise policy

They said that had the high court stayed the order, it would have caused a revenue loss of ₹3,500 crore to the Delhi government, officials said.

The Delhi high court on Monday refused to stay the New Excise Policy 2021, approved last month, after a plea was filed by the retail liquor vendors who contended that it will “completely eliminate” their operations.

The Delhi high court refused to stall the policy and posted the matter for further hearing on August 9. (HT FILE)

A bench of chief justice DN Patel and justice Jyoti Singh issued notice to the Lieutenant Governor, Delhi government and excise commissioner on the plea which questioned the excise commissioner‘s right to fix the price of the liquor in the new policy.

Senior advocate Mukul Rohatgi, appearing for the retail liquor vendors, said that the new policy divides the city in 32 zones, with 9-10 wards in each zone, for the purpose of issuance of liquor licence.

Noting that the Delhi government has introduced a new category of zonal licence, 1-7Z, for retail vends, he argued that the 1-7Z licence for each zone requires the licence holder to mandatorily run 18 retail vends.

“This scheme has completely eliminated the existing retail vendors,” he contended, asking for a stay.

The court refused to stall the policy and posted the matter for further hearing on August 9.

Government officials, on condition of anonymity, said that the high court’s refusal to stay the liquor policy is a major blow to the liquor lobby.

They said that had the high court stayed the order, it would have caused a revenue loss of ₹3,500 crore to the Delhi government.

“This amount of ₹3,500 crore, that will be collected through excise duty, will enable the funding of many government social welfare schemes. This would help many, who have suffered during the coronavirus pandemic,” said an official.