The Delhi government has decided to end discounts, rebates, and concessions on the MRP of booze at retailers after repeated complaints of crowding and lines outside liquor outlets. On Monday, the Excise Department issued a directive to all L-72 licensees in this regard.
The department also ordered all liquor stores to stop promoting discounts and deals on social media. In light of the Covid-19 pandemic and fairness in sales, officials decided to limit crowding and preserve law and order at liquor stores, according to officials. “It has been brought to the department’s attention that, as a result of discounts offered by licensees through their retail vending machines, considerable crowds have gathered outside liquor shops, generating a law and order problem and causing inconvenience to the local populace.”
Delhi Government took decision to avoid rise in COVID cases
It should also be remembered that the Covid issue is not yet finished, and the danger of Covid still exists; thus, a large crowd is likely to exacerbate the rise in Covid cases in the city,” said Excise Commissioner Arava Gopi Krishna in his order.
The order went on to say that the reductions are leading to harmful market practises by some licensees that are just for short-term financial benefit, as well as market distortions. The government’s goal with discounting was to promote customer choice, healthy competition, and price determination by market forces. According to the commissioner in the order, the government’s goal in allowing discounts in the new excise regime was not to allow discounting of this sort.
Last November 17, the new excise policy 2021-2022 went into effect, and all L-72 licence holders were required to start doing business. All L-72 licensees were allowed to grant discounts, rebates, and concessions on the MRP of liquor set by the excise commissioner under the new policy, as stated in clause 3.5.1 of the tender document.
The government has also made revisions to the bidding documents that allow licensees to grant discounts at its own discretion. According to the excise commissioner’s ruling, all L-72 licensees must now rigorously follow rule 53(4) of the Delhi Excise Rule 2010 and cease sales and offers.
If the licensee is discovered to be in violation of the order, the department will take swift action and impose fines. The opposition parties, the BJP and the Congress, also conducted protests against the new excise policy and the liquor deals.