Capital stares at a liquor crisis as host of pvt vends shut shop
NEW DELHI: Buyers joined serpentine queues before liquor shops in Delhi on Sunday as uncertainty prevailed over whether private shops will stay open from Monday or not, even as the Delhi government was yet to notify an extension of the existing 2021-22 excise policy by a month.
The extension was planned to avert chaos before the city switches back to the old excise regime under which the state government will open liquor vends again, a business it exited after the new excise policy came into effect from November 2021.
The government decided to go back to the old policy days after Delhi Lieutenant Governor VK Saxena recommended a Central Bureau of Investigation (CBI) probe into lapses in the implementation of the policy.
All private retail liquor licences expired in the city on Sunday, and the state was expected to notify an extension, in the absence which no such shop may stay open from Monday, a development that may trigger chaos since it would mean that Delhi will have no vends where people can buy their bottles.
Shops across Delhi on Sunday reported panic buying on Sunday. An attendant at a liquor store in Mayur Vihar’s Star City Mall said that many customers have already stocked up bottles. Also, under the old regime there would be no discounts on liquor, a key feature of the new policy, the attendant, who did not share his name, said.
Many shops in Connaught Place and Gole Market in central Delhi said they have exhausted their stock due to heavy rush of buyers who are desperate to get their hands on whatever they can get. Some other shops said that they have run out of bottles of most popular brands, and only a limited number of choices in terms of variety and brands are available with them.
“Customers are coming in hordes, and returning disappointed because we do not have the stock. There has been a huge rush for the last two days, and the popular brands have vanished off the shelves,” said an attendant at a liquor vend in Connaught Place.
What has compounded the problem for consumers is the fact that most vendors have not ordered fresh stocks due to the uncertainty over the continuation of their licences. Many others said even if the government announces an extension of a month, they will order a limited stock only.
Despite repeated attempts, no response was available from the Delhi government and the excise department till late Sunday.
To be sure, as of Sunday 468 private liquor shops were operating in the city. But, they are likely to shut down from August 1 because the term of their licenses under the excise policy 2021-22 will expire.
The current policy was extended twice after March 31 for two months each.
Meanwhile, due to the prevailing confusion, many vendors have decided to surrender their licenses, said an excise department official. HT has seen letters (one dated July 27 and the other July 15) from at least two licensees who have communicated to the excise department that they would like to surrender the zones and would not like to operate vends after July 31.
In June too, some liquor traders surrendered their licences expressing their unwillingness to run the business, according to the excise department official quoted above. “The excise commissioner is empowered to allot the surrendered vends on short term basis to others who fulfil the criteria so that the financial loss to the state government can be minimised,” said the official. It was not immediately known how many of the surrendered zones have been allotted to others.
A controversy erupted soon after the LG on July 22 recommended a CBI probe into alleged irregularities and procedural lapses in the implementation of the excise policy 2021-22.
As the controversy grew, the Delhi government decided to switch back to the old excise policy for six months under which government-run liquor vends will be opened. Now that the old policy is going to be implemented, Delhi needs a period of transition during which the city could witness a shortage of liquor.
A liquor trader, who asked not to be named, said the liquor business in the national capital is in turmoil for the past few weeks and it is very difficult for them to run the business in an atmosphere of uncertainty. “Even on the last date of licence expiry, the government has not issued an order extending the existing policy. It has also not made it clear whether the existing policy will be extended or not. If the government issues the order of extension of the license tonight [ Sunday night], the liquor stores can open from Monday morning as usual. If the government does not issue the order before 10am on Monday, the shops will not open. The stores can open minutes after the licensees get the extension order,” said the trader, who has a licence for two zones.
Even after the government extends the policy, the crisis is likely to persist for a while because vendors will take some time to replenish their stocks.
Traders have to place an order on the excise department portal. After that, it takes 24-48 hours, depending on the brands and other factors, to get supplies.
“Licensees will have to deposit the advance fee for one more month. The fee has to be deposited by August 15. We will buy only limited stock because we know that the license is being extended (if at all extended) for a month only. It will trigger further panic buying and the liquor shortage will be further aggravated,” the trader said.
“The old policy should be reinstated and experienced players should be given the opportunity to run the liquor trade as it was running earlier. It could bring the government around ₹6,000 crore revenue per year and the government will not face revenue shortage as well. The new excise policy has failed to bring expected revenue,” said a trader, who runs multiple liquor stores in the capital.