Clever traders use DD copies

Some liquor traders are using a loophole in the application process to apply for multiple licences without paying the non-refundable deposit.

They need to pay `1 lakh as application fee with an original demand draft (DD), which is nonrefundable. They need to pay 10 per cent of the licence fee as earnest money deposit (EMD) or `5 lakh through another DD, in a sealed cover.

The rules do not specify that traders must provide the original DD for the EMD. Traders are making photocopies of the same demand draft and using it to apply for multiple outlets. In this, they stand to lose only `1 lakh, but will benefit if they get more licences.

Some traders are using the DD photocopy to extort money from other applicants, offering to withdraw from the race if they are paid a sum. If by chance the non-serious trader gets the licence, he can hawk it for a tidy amount of money.

The demand for liquor licences is more in prime areas like Madhapur, Jubilee Hills, Banjara Hills in the city.

Telangana Wine Dealers Association president D. Venkateswar Rao demanded that the state government disqualify applicants who had submitted photocopies of the DD. He said a similar problem had arisen last year.

Asked about this, Excise and prohibition commissioner R.V. Chandravadan said the government would direct collectors to insist on applicants submitting original demand draft for the earnest money deposit. He told this newspaper that in a majority of areas, applicants were submitting original DDs.