Delhi excise dept allows private shops to offer up to 25% discount on liquor MRP

Delhi excise dept allows private shops to offer up to 25% discount on liquor MRP

FPJ Web DeskUpdated: Saturday, April 02, 2022, 04:55 PM IST
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Liquor | representative pic

The Delhi government's excise department on Saturday allowed private shops to offer up to 25 per cent discount on the maximum retail price (MRP) of liquor, over a month after it prohibited such discounts in the national capital.

An order issued by the excise commissioner of Delhi on Friday stated that the government has recommended that rebate or discount up to 25 per cent of the MRP will be allowed on the sale of liquor in jurisdiction of NCT of Delhi with strict compliance of Rule 20 of the Delhi Excise Rules, 2010.

It further mentions, “The licensees shall however strictly abide by the terms and conditions of the license and if any violation of the same is noticed strict penal action shall be taken in accordance with the provisions of the Delhi Excise Act and Rules…”

In February, the government had prohibited discounts and schemes being offered by liquor stores in view of violations of Covid-related guidelines and unhealthy market practices.

"However, in overall public interest, the government reserves the right to withdraw the discount at any time. The government will not be under any obligation whatsoever and it will be non-binding on the government to allow discount on sale of liquor in Delhi," it added.

In view of violations of the Delhi Disaster Management Authority (DDMA) guidelines related to COVID-19 and "distortion of market" due to "unregulated discounts" offered by some licensees, the excise department had on February 28 discontinued rebate and concessions on the sale of liquor in Delhi, the order stated.

With liquor shops giving discounts and offers like 'buy one, get one free', crowds were seen thronging liquor vends in many parts of the city in February. Some law and order issues were also reported with police being called in to control mobs.

Liquor sellers had filed a petition in the High Court challenging the government’s previous decision to ban discounts. The court had earlier this month refused to stay the government’s decision to this regard.

The Delhi government had approved the Excise Policy 2021-22 along with the terms and conditions for granting various categories of licences last year. The policy came into effect on November 17, 2021.

According to the tender document issued by the excise department for granting 849 retail liquor licences, the licensees are free to give rebate/discount/concession on the the MRP of liquor fixed by the excise commissioner.

(with agency inputs)

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