Gurugram: The Excise and Taxation Department has cancelled the licences of 42 zones of retail liquor distributors in Gurugram and Faridabad in Haryana allotted for fiscal 2018-19, an official said on Friday.

The Excise and Taxation Commissioner (Finance Commissioner) issued the orders under section 36 A (11) of Haryana Liquor License Rule 1970 and the state excise policy 2018-19.

Earlier, licenses were allotted to these firms through e-tendering procedure for the upcoming financial year. The reasons behind the cancellation could not established immediately.

The department has rejected 27 and 15 allotment licenses from Gurugram (two zones) and Faridabad respectively.

The move came on the recommendations by concerned Deputy Excise and Taxation Commissioners.

"Concerned firms will be informed at least a week ahead of new financial year starting April 1 and Earnest Money Deposit (EMD) and security installment of liquor sellers will be refunded soon," a senior excise officer told IANS.

Gurugram, the Millennium City, on an average, consumes over four lakh beer cans and nearly 1.24 lakh bottles of Indian-made foreign liquor (IMFL) and country liquor daily through authorised vends, according to Haryana government data.