Sensing cartelisation by groups applying for liquor vends, Haryana government has rejected 27 liquor-vend zones auctioned in Gurgaon district through e-tenders on March 15. A group of traders cartelised and discussed the tender amount before bidding for the same.
There are a total 41 zones in Gurgaon, and each zone comprises a maximum of six liquor vends.
The excise department rejected 11 zones of Gurgaon (east), 16 of Gurgaon (west) and 15 allotment licences from Faridabad.
According to excise officials, the revenue earned from the auction through e-tendering was less than last year’s liquor license fee — it was not expecting such low bid from liquor dealers.
Money deposited by the bidders is to be refunded within ten days, officials confirmed.
On Friday, the department released a notice that read: “The excise and taxation commissioner, in exercise of such powers as are conferred under Rule 36-A (11) of the Haryana liquor license rules, 1970 and under country liquor of the excise policy for the year 2018-19, has rejected the allotment of 16 zones of retail liquor outlets of Gurgaon (West) and 11 zones of Gurgaon (East) department and 15 of Faridabad zones.”
The excise and taxation commissioner issued the orders under Section 36 A (11) of Haryana Liquor License Rule 1970 and the state excise policy 2018-19.
The Gurgaon excise department had started receiving e-tenders for 246 liquor shops across the city in the second week of March. The evaluation of liquor vends took place and they were auctioned to the highest bidder.
This year, during the auctions, the West department earned a profit of 8.23 per cent against a reserve price of Rs 344 crore. The bid amount was Rs 372.29 crore. In the East, the profit was 10.64 per cent against a reserve price of Rs 337 crore. The bid amount was only Rs 369 crore.
The state excise department earned Rs 5,000 crore in revenue in fiscal 2016 -17 and had set a revenue target of Rs 6,100 crore for the financial year 2017-18. Currently, India-made Foreign Liquor (IMFL) is sold on the basis of the minimum retail price decided by the trader or the retailer.
