Delhi liquor policy: Vendors plan to move out as inquiries make situation murkier

Delhi’s liquor policy has landed the AAP government in the soup, leading Lieutenant Governor of Delhi VK Saxena to order an inquiry, and making vendors move out of the capital. The Delhi government has claimed that the policy will benefit the capital city in the long run as revenues will increase once the policy is implemented properly. Meanwhile, there still are many provisions like lowering of drinking age and home delivery of liquor which are yet to be implemented and notified by the LG and are still pending with him. 

The inquiries that have been recommended by LG Saxena could have further adverse impact on the ongoing policy. 

The Kejriwal government has claimed that the policy is the answer to many issues relating to liquor trade. It added that the liquor mafia has been reduced to zero by bringing out a policy that has bare minimum interference from the government. 

Before the new policy, the government of Delhi used to run almost 500 liquor outlets through different agencies, and 200 were run by private players. The new policy proposed a total of 849 liquor shops across 32 zones. The plan was for every Delhi ward to have an average of three shops. However, 67 wards were in the non-confirming areas, hence a total of 200 shops could not be open due to a provision that bars commercial activity. 

Meanwhile, nine of the 32 zones have withdrawn their licences, and a few more are likely to follow suit. 

The Delhi government is yet to announce the terms and conditions, while the old ones expired at the end of the previous financial year. There have been two extensions since then. 

In the absence of any clarity, private players who are still unsure due to the confusion are planning to move out of the capital, which might lead to bigger troubles. 

Sources from the Delhi LG’s house confirmed to India Today that there are allegations of corruption in the new liquor policy, although it is yet to be proved. Sources in the LG Secretariat confirmed that the investigation is ongoing for awarding of retail licences at the zone level for liquor sale in Delhi. 

LG VK Saxena has ordered a Chief Secretary level inquiry and has recommended a CBI inquiry based on allegations of violations of the excise policy prohibiting the emergence of monopolies and cartels in liquor business. These clauses prohibit bidding by entities which have any manufacturing facilities directory or through a sister company, which was apparently violated. Another allegation concerns the promoters and shareholders of one of the companies which was blacklisted by the Madhya Pradesh government for evading excise duty but was awarded a licence in contravention to New Excise Policy of Delhi 2021-22.

Also read: Delhi left with 240 liquor shops; none in some prime South Delhi areas