Plea filed in High Court challenging Delhi govt's decision prohibiting discounts on liquor

A plea has been filed in the Delhi High Court challenging the Delhi government's decision prohibiting any discount or rebate or concession given by retailers on the sale of liquor.

The petition, which has been filed by several liquor licence holders, said the liquor policy and the tender expressly permit the grant of discounts by the retail licencees. 

However, without giving them an opportunity to be heard, the Delhi government passed an order on February 28, prohibiting the grant of discounts or rebates and concessions. 

Discounts were permitted and the licensees were indeed giving and adopting discounts. This was based on such arrangements as licensees could enter into with L 1 licensees, and this was a free market and fair competition principles in operation, the petition said.

L 1 licenses are granted for the wholesale supply of Indian liquor.

On February 28, the Delhi excise commissioner passed an order discontinuing any discount or rebate on the Maximum Retail Price (MRP) of liquor in the national capital.

The order referred to reports of large crowds at liquor stores as well as unhealthy market practices as the reason for the discontinuation of the discounts and said that the vendors are indulging in promotional activities which are prohibited under the Delhi Excise Act.

In their plea, the liquor licence holders contended that the actions of the authorities are arbitrary, disproportionate, discriminatory, and violative of their fundamental rights under Article 14 of the Constitution.

The rules of the game cannot be changed after the game has begun. Power to amend the tender does not exist after the bids are finalised and licenses issued, it said.

The plea said the decision of the government completely takes away the petitioners' right to take business decisions with regards to discounts/ concessions/rebates which the petitioners were otherwise empowered to take under the new Excise policy and tender documents.

'Clauses' such as to give discounts formed an essential part of the new Excise policy scheme. Hence, the impugned to discontinue/ withdraw an important clause is in complete contradiction to the letter and spirit of the Excise Policy, it said while seeking to set aside the order.

The plea alleged it appeared that the order has been passed at the behest of certain influential persons who are losing market because of fair competition in terms of discounts.

The petition was filed by Bhagwati Transformer Corporation, Raisen Marketing Pvt Ltd, Sainik Industries Pvt Ltd, Millennium Infraengineers Pvt Ltd, and Glow Tradex India Pvt Ltd.