ALLOTMENT OF VENDS SUBJECT TO OUTCOME OF PETITION FILED BY LIQUOR CONTRACTOR: HC

CHANDIGARH: The Punjab and Haryana high court on Tuesday said the allotment of liquor vends in Chandigarh would be subject to outcome of a petition filed before it by a liquor contractor.

The petitioner, Rajbir Singh, has challenged the excise policy 2020-21, which comes into effect from July 1.

It was alleged that the administration’s move is leading to “complete cartelisation and monopoly” of certain individuals through their firms. “The policy is wholly arbitrary. Certain internal departmental stores have been given the licence at the rate of ₹20 lakh to sell foreign liquor while retailers have to pay approximately ₹4 crore as licence fee,” senior advocate Anand Chhibbar told court.

It was submitted that the excise policy does not promote free trade, as it states that for any brand of foreign liquor there shall be only five wholesale licensees, who shall further sell liquor to all the retail licensees. “Due to this, instead of buying foreign liquor directly from a reputed manufacturer, small contractor is left at the mercy of the competitor retailer who also has a wholesale authorisation for a particular brand. It will create an unfair advantage to the wholesaler who may choose to sell or make brands available only to their own retail vends,” Chhibbar had told court. It has been argued that the UT should have capped the highest bid and draw of lots could have been introduced so that cartels may not jack up prices to bag contracts.

The petition also alleges that classification of vends in city shops (foreign liquor quota increased but country liquor quota decreased), village shops (country quota up but foreign liquor quota decreased) and normal shops (with no change in quota) is unreasonable as it discriminates between liquor vends. The high court bench of justice Rajan Gupta and justice Karamjit Singh while issuing notice for July 8 has made it clear the allotments would be subject to outcome of the petition filed.

The policy is wholly arbitrary... It will create unfair advantage to the wholesaler who may choose to sell or make brands available only to own retail vends. PETITIONER