The excise department of the Delhi government has permitted private outlets to provide up to a 25% discount on the maximum retail price (MRP) of liquor. In February, the government restricted liquor shop discounts and schemes due to infringement of COVID-related standards and hazardous market practices.
According to an order issued by the Delhi Excise Commissioner on Friday, the government has proposed that a rebate or discount of up to 25% of the MRP be permitted on the sale of liquor in the jurisdiction of the NCT of Delhi with strict adherence to Rule 20 of the Delhi Excise Rules, 2010. ‘… Under Section 4 of the Delhi Excise Act, the Commissioner of Excise instructed that licensees can provide discounts or concessions up to a maximum of 25% of the MRP of liquor sale in Delhi,’ according to the ruling.
The licensees will strictly adhere to the terms and conditions of the licence. If any infringement is discovered, harsh legal action will be taken against them under the Delhi Excise Act and other laws, according to the statement. ‘However, in the interest of the general public, the government maintains the right to revoke the discount at any moment. The government will be under no obligation to grant a discount on the sale of liquor in Delhi, and it will be non-binding on the government’, it added.
The excise department discontinued subsidies and concessions on the sale of liquor in Delhi on February 28 due to violations of the Delhi Disaster Management Authority (DDMA) guidelines related to COVID-19 and ‘distortion of the market’ due to ‘unregulated discounts’ offered by some licensees, according to the order. Crowds were spotted thronging booze vends in several sections of the city in February, with liquor outlets offering discounts and incentives such as ‘buy one, get one free.’ There were also reports of law and order difficulties, with police being called in to quell rioters.
In the aftermath of liquor stores lowering prices on various brands of alcohol by up to 40%, people began to accumulate large quantities of alcohol. They believed that the programs would be discontinued at the end of the current fiscal year in March. The excise agency had suspended the licensees’ discounts and incentives, citing law and order issues and annoyance to locals. Some licensees have filed an appeal with the Delhi High Court against this ruling.
The government’s intention in permitting merchant discounts was to encourage customer choice, healthy competition, and price setting by market forces, according to the excise department. This department defended the move to eliminate discounts. ‘The licensees were spotted engaging in different promotional activities such as social media and banners, as well as hoardings put outside stores. This is a prohibited activity under the Delhi Excise Act, 2009, and the Delhi Excise Rules, 2010,’ it added.
Last year, the Delhi government adopted the Excise Policy 2021-22, as well as the terms and conditions for awarding several kinds of licences. The policy took effect on November 17, 2021. According to the tender document released by the excise department for the granting of 849 retail liquor licences, licensees are permitted to offer rebates/discounts/concessions on the MRP of liquor set by the excise commissioner.
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