High court refuses to stay new Punjab excise policy

THE ALLEGATIONS THAT THE NEW EXCISE POLICY HAS CAUSED MONOPOLY IN LIQUOR TRADE WERE WRONG, THE GOVT TOLD THE COURT

CHANDIGARH: The Punjab and Haryana high court on Tuesday refused to stay the new Punjab excise policy. During the resumed hearing, petitioners’ counsel Vikram Jain requested the court to stay the policy till the time matter is under adjudication in the court.

However, the bench of justice AK Mittal posted the matter for April 5 while observing that it would try and dispose of the matter at the earliest.

Earlier, the government told the court that the allegations that its decision to change the excise policy has caused monopoly in liquor trade were wrong. Additional excise and taxation commissioner Neelam Chaudhary said the clause of L-1A license was in existence since the year 2011 and being granted to those who fulfilled required conditions .“The condition for the grant of L-1A license remains the same for all, except manufacturers. Earlier, the manufacturers were also eligible for L-1A licence, which has been done away with for this time,” Chaudhary said, adding that other conditions remained the same. The government further added there were a lot of manufacturers with L-1A licenae who could sell the liquor to L- 1 licence holders. “In order to streamline and have effective control so that no revenue is lost, manufacturers have not been allowed to have L-1A,” government said, adding that the petition was misconceived and should be dismissed.

It added that presently there were 19 L-1A licence holders operating in the state apart from 17 distilleries, three breweries and 22 bottling plants. The reply came on a petition of one Amarjit Singh Sidhu, who is into the business of liquor selling. He had approached the high court stating that the government had introduced L- 1A licence in the excise policy just to benefit Chadha Group, Malhotra Group, Doda Group and AD Group/Saraya Group, who are the major stake holders in the liquor business in Punjab. NOTICE TO PUNJAB GOVT

The high court also issued notice on a petition by an NGO, Arrive Safe, wherein it was alleged that the government had given priority to revenue over safety. To enhance the sale of liquor along highways, the government had amended the Punjab Excise Act of 1914, alleged the petition. “This amendment is in complete contravention of guidelines and observations of the order of high court,” NGO head Harman Singh Sidhu had said. The government response has been sought by April 5.