Indore News: High Court Seeks Clarity On Liquor Tender Policy Amid Cartel Concerns

Indore (Madhya Pradesh): The Indore bench of the Madhya Pradesh High Court on Monday continued hearing a public interest litigation (PIL) challenging a controversial excise tender policy, directing the State to inform the court about proceedings before the Competition Commission of India (CCI).

The case, Shrish Agrawal vs State of Madhya Pradesh, questions a tender issued by the Excise Department for supplying country liquor to 55 government warehouses. The petitioner has raised concerns that the policy restricts participation to distilleries located within Madhya Pradesh, potentially limiting competition.

A division bench comprising Justice Vijay Kumar Shukla and Justice Alok Awasthi allowed an application seeking amendment to the petition, citing subsequent developments in the matter. The court granted the petitioner three working days to file an amended version of the plea.

During the hearing, counsel for the petitioner said the restriction aligns poorly with findings from a report of the Comptroller and Auditor General (CAG), which had earlier warned that limiting tenders to in-state distilleries could lead to cartelisation and reduced competition.

The State, however, informed the court that the issue, particularly regarding cartel formation, is already under consideration before the CCI, a statutory authority tasked with ensuring fair competition in markets.

Taking note of this submission, the High Court deferred further hearing of the case for three weeks. It directed the State s counsel to update the court on the status of proceedings before the competition watchdog.

In the previous hearing on March 12, the court had granted time to the State to seek instructions after preliminary arguments highlighted the alleged anti-competitive nature of the tender conditions.

The matter will now be taken up after three weeks, with the court expected to consider the CCI s findings before proceeding further.