AAP govt rejects private retailers’ plea to restore licences

The government has decided to allow only the state-owned companies to operate the new retail vends. The four state PSUs will start operating 240 vends
Customers throng a liquor store at Daryaganj in New Delhi on Wednesday | PTI
Customers throng a liquor store at Daryaganj in New Delhi on Wednesday | PTI

NEW DELHI: The Delhi government, has decided to revert to the old liquor policy from September 1, and has rejected a plea by the private retailers to restore their licenses revoked following the announcement of the new excise policy in November 2021.

Delhi had 632 retail shops prior to the implementation of the new liquor policy. Of these, 372 were operated by the four state-owned companies, DSIDC, DTTDC, DSCSC and DCCWS, and the remaining by private vendors.

The government has decided to allow only the state-owned companies to operate the new retail vends. The four state PSUs will start operating 240 vends on Thursday. In a letter to the state excise commissioner, the Delhi Liquor Traders Association, an umbrella body of the state’s private liquor traders, said that the private retailers operated 40 per cent of the shops but contributed 60 per cent of the total revenue under the old policy.

This was because the private operators ran premium outlets in malls and supermarkets and other commercial hubs which drew high-end clients. These private shops offered a wide range of brands that helped generate large revenues.

Private retailers told the government that they have a large number of owned and leased premises and would be able to open vends on the very first day. The state PSUs are able to open 240 shops, compared to 372 that they ran earlier. This is because many shops were rented by them, which they surrendered after being deprived of business under the new policy.

The government has not responded to the private vendors’ representation. Sources said the AAP government has decided to keep out the private retailers until the new policy is reworked and brought back. The implementation of the old policy is a stopgap arrangement.

According to sources, shops being opened by state PSUs are located in non-conforming areas and may have to shut down as the Municipal Corporation of Delhi is likely to deny permission for their operation there. The law allows liquor shops to operate only in commercial areas approved by MCD and the Delhi Development Authority.

The liquor policy mess has brought down the number of shops in Delhi from a high of 848 under the new policy an improvement from 672 shops under the new policy to 240 shops. The excise revenue has also been in a free fall.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com