New Delhi: The excise department of the Delhi government has permitted private outlets to provide up to a 25% discount on the maximum retail price (MRP) of booze.
In February, the government restricted liquor shop discounts and schemes due to infringement of Covid-related standards and hazardous market practices, news agency PTI reported.
According to an order issued by the Delhi Excise Commissioner on Friday, the government has proposed that a rebate or discount of up to 25% of the MRP be permitted on the sale of liquor in the jurisdiction of the NCT of Delhi with strict adherence to Rule 20 of the Delhi Excise Rules, 2010.
"... the Commissioner, Excise, under Section 4 of the Delhi Excise Act directed that the licensees can offer discount or concessions up to a maximum of 25 per cent of the MRP of liquor sale in Delhi," the order was quoted by PTI in its report.
The licensees will rigorously adhere to the terms and conditions of the licence, and if any violations are discovered, harsh legal action will be taken against them under the Delhi Excise Act and other laws, according to the statement.
"However, in overall public interest, the government reserves the right to withdraw the discount at any time. The government will not be under any obligation whatsoever and it will be non-binding on the government to allow discount on sale of liquor in Delhi," it added.
The excise department discontinued rebates and concessions on the sale of liquor in Delhi on February 28 due to violations of the Delhi Disaster Management Authority (DDMA) guidelines related to COVID-19 and "distortion of the market" due to "unregulated discounts" offered by some licensees, according to the order.
Crowds were spotted thronging booze vends in several sections of the city in February, with liquor outlets offering discounts and incentives such as 'buy one, get one free.' There were also reports of law and order difficulties, with police being called in to quell rioters
As a consequence of liquor stores lowering prices on various brands of alcohol by up to 40%, many individuals began acquiring and storing significant quantities, believing that the programmes would be discontinued at the end of the current fiscal year in March.
The excise agency had suspended the licensees' discounts and incentives, citing law and order issues and annoyance to locals. Some licensees have filed an appeal with the Delhi High Court against this ruling.
The government's intention in permitting merchant discounts was to encourage customer choice, healthy competition, and price setting by market forces, according to the excise department, which defended the move to eliminate discounts.
"The licensees were seen indulging in various promotional activities through social media and banners, hoardings being placed outside stores, which is a non-permissible activity under the Delhi Excise Act, 2009 and the Delhi Excise Rules, 2010," it said.
Last year, the Delhi government adopted the Excise Policy 2021-22, as well as the terms and circumstances for awarding several kinds of licences. On November 17, 2021, the policy went into force.
According to the tender document released by the excise department for the granting of 849 retail liquor licences, licensees are permitted to offer rebates/discounts/concessions on the MRP of liquor set by the excise commissioner.
(With PTI Inputs)