Delhi HC issues notice to CM Kejriwal-led govt on petition challenging new liquor policy

The Delhi High Court on Thursday issued notice to CM Arvind Kejriwal-led Delhi government and others on various petitions challenging the new liquor policy. The Delhi HC referred a fresh plea challenging the Delhi government's revised excise policy to a Bench that is also hearing another petition on the issue. 

A Division Bench of Chief Justice DN Patel and Justice Jyoti Singh directed the Delhi government and others to file a reply on the various pleas challenging Delhi Excise Policy 2021-2022 alleging that it was unfair, illegal, arbitrary, and violative of the Delhi Excise Act, 2009. However, the counsel appearing for the Delhi government submitted that the new policy aims at helping to reduce corruption and provide an opportunity for fair competition in the liquor trade. 

One of the petitions was filed by Anita Choudhary, owner of a wholesale business of sale and distribution of liquor in Uttar Pradesh. She filed the petition through advocate Sanchar Anand submitting that he is affected by the new liquor policy. The aggrieved petitioner refuted one of the clauses wherein a person with wholesale distribution experience of a minimum of five years is eligible to apply for an L-1 wholesale liquor license in the national capital. She brought to light the following two clauses;

Under Clause 3.1.1 of the Delhi Excise Policy 2021-2022, Framework for Grant of Wholesale License in Form L-1 sub-clause "ii) The license shall be granted to private business entities which have distribution experience in liquor trade in any State of India for at least 5 years." 

"Under Eligibility clause 3.1.2 i) The wholesale license in the Form L-1 shall be granted to a business entity having wholesale Distribution experience in the liquor trade in any State/UT in India for at least 5 years."

Small retail vendors left out in Delhi Excise Policy 2021-2022: Petitioners

Another plea was filed by Ashiana Towers and Promoters Ltd and others through Advocate Sanyam Khetarpal, Narita Yadav and Nitesh Goyal sought appropriate direction to strike down and quash the E-tender in a notice dated June 28, 2021, with a provision prescribing the procedure to be followed for inviting zone wise electronic bids for grant of 32 zonal licenses of liquor for the supply of Indian and Foreign Liquor (except country liquor) in NCT of Delhi during 2021-2022. 

Under clause 4.1.1 sub-clause vi) Allotment of 32 L-7Z licenses and 844 L-7V retail vends licenses shall be made through e-tender process with the reserve price for license fees as the base for bidding.

Senior Advocate Mukul Rohatgi, on behalf of the petitioner, said that by the new Excise Policy, Delhi will be divided into 32 zones and a person can bid for two zones and the policy will lead to complete monopoly of the major key players.

All small retail vendors would be left out and the entire thing would be monopolised by the Delhi government for well-networked people. This is the complete exclusion of small people who were having licenses for the last various years, the petitioners submitted.

"Cartelisation is eminent here," Senior Advocate Rohatgi argued.

Meanwhile, the respondents (Delhi government) in the matter have introduced a new category of zonal license, L-7Z, whereby holders of these can run the retail vends. The scheme of the impugned Excise Policy is such that one L-7Z license for each zone shall be granted and the license holder ought to mandatorily run 18 retail vends. 

The counsel had said the minimum reserved price for one zone license is about Rs 200 crore due to which the existing retail vendors are completely out of the competition. Various associations have also challenged the liquor policy. The Delhi High Court has listed the matter for further hearing on August 9 along with other petitions over a similar bone of contention i.e. Delhi Excise Policy 2021-2022.