HC notice to state on plea challenging excise policy

PETITIONER ALLEGES THE GOVERNMENT HAS REDUCED LICENCES TO A SOLE LICENSEE IN THE CATEGORY OF INDIAN MADE FOREIGN LIQUOR

: The Panjab and Haryana high court has sought response from Haryana by March 28 on a petition challenging the state excise policy for 2017-18 in which the government had reduced licences to a sole licensee in the category of Indian Made Foreign Liquor (IMFL).

The notice was issued on the petition of National Restaurant Association of India in which challenge has been laid to amended clause 9.5 of L-1BF licence, which the petitioner claimed was in violation of the Punjab Excise Act, 1914 (as applicable in Haryana) and the Haryana Liquor License Rules, 1970.

Under L-1BF license, a wholesale licensee for imported foreign liquor will be authorised to import liquor, including beer from other countries and supply it to L-1s, L-4, L-5s, L-12Cs and L-12Gs in state.

Arguing for the petitioner, counsel Vikram Jain had submitted that the decision would lead to escalation of prices of premium imported liquor brands, as licensee will only sell the liquor brands in which he gets maximum benefit, which would render the restaurants out of business.

Restaurant owners would be subject to “whims and fancies” of the licensee in purchase of liquor.

Such exercise of having only licensee would lead to massive “monopolisation” as he would only import the liquor brands and would fix prices, Jain had argued.

The court was also informed that for this category, reserve price would be Rs 50 crore as against merely Rs10 lakh, which existed in earlier excise policies.

A wine bottle which is costing Rs 20,000 at present with multiple licensees in the state could be sold for more than Rs 50,000 if provisions are not set aside, Jain had contended.