On Saturday, Sisodia, who also holds the excise portfolio, had said: “We have decided to end the new policy and given directions for government shops to open… I have ordered the Chief Secretary to ensure that there should be no corruption in government shops and no illegal alcohol sold in Delhi… I have given directions that there should be no chaos during the transition period.”
While the government will not be extending the new policy, sources in the Lt-Governor’s office said it has sent a file to the L-G, proposing to extend existing licences for a month till August 31 for the transition to take effect. This awaits the L-G’s approval, said sources. Meanwhile, a government notification issued late Sunday night said licences of country liquor shops (L-3/L-33 licence) will be extended for two months (August 1-September 30), on a pro rata basis.
Meanwhile, the finance department has written to the excise department and heads of four departments — DSIIDC, DTTDC, DCCWS and DSCSC — which used to operate government liquor shops, to immediately provide details of old vends, their locations and staff who used to be employed there. Asked about this, a senior DSIIDC official said, “We also have heard of it but have not received any communication so far.”
Under the old policy, there were 475 government-run shops and 389 privately owned ones.
A government official said, “These government shops were either shut or the space was taken up by private vends on rent. Now, the government has to ascertain how many are open or rented out. More importantly, a proposal has to be prepared and passed in the Cabinet. As of now, a file has been moved to the Chief Secretary and he will send it to the Deputy CM. The Deputy CM will then table it in the Cabinet for approval and forward it to the L-G for final implementation.”
In limbo
Private liquor vends and their employees, meanwhile, are staring at a loss in business and jobs. There are currently 468 vends active in the city, which employ a host of people — salesmen, managers, promoters, sanitation staff, security guards, among others. Many are planning to surrender their licence even if there is an extension, which will see the number of vends go down to 360-400. Most are unsure of what the future holds.
A salesman employed at a liquor shop in Lodhi Colony said: “I have a family of four and I am the sole breadwinner. We are clueless about what is happening — the news says the government has ordered closure of private shops while I have heard from people that the licence may be renewed for one more month. But my employers said our shops will close as the owner does not want to renew the licence.”
He added: “What is our future under the old policy? No one knows or cares about what happened to workers/staff who were earlier employed at government liquor shops.”
A man employed at a liquor shop in Defence Colony said, “I got married recently and shifted to Delhi from Odisha. I don’t know what I will do if I lose my job.”
A manager at a Lajpat Nagar liquor shop added, “When the government-run shop shut last year, many employees joined private vends… but a large number are still unemployed. At private liquor shops, staffers are paid Rs 30,000 a month and a manager gets Rs 45,000-50,000. At government shops, the pay is Rs 20,000…”
To clear out stock over the weekend, several liquor shops were offering discounts up to 25% and offers such as ‘buy one get one free’, ‘buy two get three free’ on premium brands.
Even if licences are extended, there could be a shortage of liquor as several shops are sold out. “We have sold almost all our stock, we are only left with premium liquor which is expected to be sold in a day,” said the manager of a liquor shop in Defence Colony.
A liquor dealer added: “It will take at least a week for paperwork as almost all licences will expire on Sunday,”
Another dealer pointed to the cost involved in the entire process: “To acquire a licence, each zonal vend had invested around Rs 255 crore… An additional Rs 20 crore to Rs 25 crore was spent on other things such as setting up shops. We also have to pay excise duty and VAT… Considering the expense, small companies are not likely to not renew licences.”
Several shops, meanwhile, saw people queuing up to cash in on discounts. “I heard the shops are shutting for two months. So I thought to stock up as my sister is getting married next month… and there are good offers today,” said Jangpura resident Arvind Sharma, who was waiting outside an outlet in Govindpuri.
Others left empty handed. “We were looking for scotch and beer but it is not available here. We went to at least four shops in South and Southeast Delhi…,” said IT professionals Gaurav and Aniket.
Some customers said the government should allow at least some private vends to operate as government-owned ones don’t have premium liquor. A liquor promoter added, “People will head to Gurgaon now as it is cheaper… shops too are open till late there.”
Behind the rollback
Introduced last November, the new excise policy made sweeping changes to the nature and functioning of liquor trade in the city. The government exited the customer-end of the trade entirely, shutting all government-run liquor vends, and sale of liquor was handed over exclusively to private players. Licences were issued through an open auction. It was decided to open 849 shops divided into 32 zones, with each zone having 27 liquor vends.
The policy soon ran into stiff opposition. While the AAP government maintained it would end the liquor mafia, the BJP accused it of allowing liquor shops close to schools and places of worship.
As a result, of the total allotted vends, only about 630-650 shops could open. Several licencees faced problems in getting permission to open shops in non-conforming areas due to protests by the MCD, opposition parties and the public.
Matters came to a head earlier this month when the L-G sought a CBI probe into the new policy following a report submitted by Delhi Chief Secretary Naresh Kumar on the matter. The report, which officials said was submitted on July 8, accuses Sisodia of providing undue benefits to liquor vend licencees in lieu of “kickbacks” and “commissions” and the money being used in the recent Punjab elections.
The Economic Offences Wing of the Delhi Police has also initiated a probe following a complaint alleging illegal distribution of zonal liquor licences to manufacturing companies and blacklisted firms in violation of terms and conditions of the Delhi Excise Policy 2021-22.
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