Liquor shops, bars to open from Tuesday, Delhi LG extends excise policy

The excise department in an order issued on Monday night extended liquor licences under all categories, including retail and wholesale, under the existing excise policy till August 31.

Liquor vends and bars in Delhi are set to reopen on Tuesday after being shut through the day on Monday, as lieutenant governor Vinai Kumar Saxena extended permits for another month under the excise policy of 2021-22.

Delhi Lieutenant Governor VK Saxena. (HT_PRINT)

Permits to sell liquor in the Capital expired on July 31.

The excise department in an order issued on Monday night extended liquor licences under all categories, including retail and wholesale, under the existing excise policy till August 31.

“The extension of the licences is subject to the advance payment of pro-rata licence fee,” an excise department official said.

A trader said that during the extended period not only can the licensees clear existing stocks, they can also purchase fresh inventory for sale till August 31.

The excise department in another order said the old excise regime will be implemented in Delhi from September 1.

Although Saxena approved the extension of permits in the afternoon, the excise department could not issue an order immediately, and stores and bars could not reopen in the evening.

“Ending confusion and uncertainty over the fate of the prevalent Excise Policy, marred by severe irregularities and inconsistencies, LG V K Saxena has approved the Kejriwal government’s proposal, sent late last night, of extending the same by a month,” the lieutenant governor’s office said in a statement. “This extension has been approved essentially as a limited transitory measure considering the tenure of existing licenses that expired on 31.7.2022 and to maintain the confidence of people at large in the administration.”

A least two of the six bars in Connaught Place that HT contacted said they served liquor on Monday. The others said they served food but not alcohol. “Hopefully, we will be able to serve liquor from Tuesday,” a manager at a bar in Connaught Place said, asking not to be named.

The Delhi government has decided to reintroduce its old excise policy, under which stores of state-run agencies accounted for almost 60% of the liquor retail shops in the Capital. Saxena has recommended a Central Bureau of Investigation probe into alleged irregularities and procedural lapses in the implementation of the 2021-22 policy, which saw the government exiting the liquor business.

As the old excise policy is going to be implemented, the government has started preparations to run liquor stores once again.

“The Delhi government will switch to the old policy for such period till a long-term suitable excise policy can be framed with measures in place to protect and enhance government revenue,” said a Delhi government official.

Two liquor retailers told HT that they sustained significant losses due to the closure. “The closing of liquor shops for a day resulted in financial losses for us for no fault of ours. We are operating as per the policy. The government should be sensitive to us,” a trader said, requesting anonymity.

Another trader who runs multiple liquor stores in west and east Delhi said the situation has brought uncertainty over the livelihoods of hundreds of people.

“Around 600 people work in my stores, many of whom left their previous jobs to join the stores, hoping that it will give them a better future. What is their fault? What is the fault of the traders who invested crores of rupees in this business? We did not invest the money for a short period of time,” he said, requesting not to be named. “The government should give us clarity on the situation.”

Shops across Delhi on Sunday reported panic buying as buyers joined serpentine queues as uncertainty prevailed over whether private stores will stay open from Monday. Many liquor stores had put up advance notices at their stores, announcing that the stores would remain shut on Monday.

The development led to lower than usual footfall at Connaught Place restaurants on Monday, said Amit Gupta, executive committee member of the New Delhi Traders Association.

“A significant number of people come to restaurants for liquor as well as food. Many people who turned up at the restaurants enquired whether liquor was being served, and returned when they were informed that liquor service was not possible due to the absence of the excise policy extension order,” Gupta said. “Chaos and confusion prevailed at restaurants in Connaught Place.”

Bars will start serving liquor from Tuesday as Saxena has extended their permits for another month, said Rahul Singh, former president of the National Restaurants Association of India.

It is not yet known if under the old policy, only the government will run liquor stores, or if licences will be issued to private players as well, as was being done before the new policy of 2021-22 was implemented from November last year. Under the old regime, around 40% liquor stores were being run by private players.

There was no official comment from the Delhi government on the matter.