‘Money, power more intoxicating than liquor’

How liquor vends are auctioned?

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The method adopted by the Excise Department to auction liquor vends yearly is through a draw of lot. Anyone can buy a lottery by paying Rs 15,000-70,000 to get the contract in urban or rural areas. This year, the entire district was divided into 20 zones for which a target revenue of Rs 202 crore was fixed by the department, which is Rs 2 crore more as compared to the previous year. An applicant may purchase as many lotteries as he could, depending upon his capacity to spend money. The money spent on buying lottery is non-refundable.

So, it’s the game for only those people with deep pockets, is it?

People try their luck even with a single lottery. It depends upon one’s fortune. Sometimes people fail to win despite buying 50 lotteries and at times someone having one lottery gets the contract.

Why is it said that this business is not everyone’s cup of tea?

Apart from deep pockets, political contacts and muscle power too play a major role in getting contract and carrying on the Herculean task of liquor business. For instance, this time, the entire process of auctioning was hijacked by certain politically connected people, in connivance with the Excise Department. Here money, muscle power and connections intoxicate more than the liquor itself.

How can you say so? Elaborate.

When the auction of vends was going on in a smooth manner and zone-wise auctions were being allotted at a private marriage palace on March 27, I was allotted the 11th zone (Kotfatta). After being duly declared winner, I paid five per cent of the amount, instead of usual one per cent. But even then this zone was not allotted to me as the auction was cancelled. The advance payment I made is still with the department and now I am nowhere in the game.

Why can’t anyone take a contract for only one or two liquor vends and what is the reason behind giving contracts in zones?

It’s all about money. So that only giant investors could invest in this trade and not any Tom, Dick or Harry. The hidden motive is that liquor can be sold at any price fixed by the investors to get maximum profits and to share it with officials.

What is the cost of one lottery?

The zones are divided as per the sale of liquor. The area wise lottery’s cost this time was Rs 15,000, Rs 25,000, Rs 35,000, Rs 45,000, Rs 55,000 and Rs 70,000. The yearly amount to be deposited by the contractor (after winning) fluctuates from Rs 1 crore to Rs 30 crore. The rate for an area is high where the sale of liquor is more. The department provides liquor to the contractor as per the zone-wise liquor quota in lieu of the yearly fees. And if anyone wins a lottery then he has to pay one per cent of the total yearly amount immediately, 11 per cent before March 31 and the rest amount in 9 to 10 instalments.

Then what went wrong this year for which you had to knock the door of the High Court?

The Excise Department, this time, was hand in glove with certain contractors and despite the claims of transparency, officials cancelled the draw of lots on March 27 and announced the next date of auction as March 31. One can very well imagine the role of officials as during the first auction, 826 applications were received and the second time they got only six. The department got nearly Rs 2.25 crore only by way of receiving applications during the first time.

Why do you think the department has done so?

Just to please their political masters and mint money, in connivance with liquor contractors. Moreover, only three groups are in the game this year whereas last year, seven groups had got the contract. Less people in the game means more monopoly and this proves instrumental in overcharging and fleecing customers.

So what are your plans to fight against the ‘injustice’?

I moved the Punjab and Haryana High Court against the decision of cancellation of auction, which was held on March 27. The court initially granted stay over the auction for one day but later it vacated stay and allowed to file fresh petition. Now, I have moved a fresh petition seeking allotment of Kotfatta Zone to me and the court has summoned liquor contractors and the state during the next hearing on April 23.

AETC Parmod Parmar responds to following questions

Liquor contractor Harish Kumar has levelled allegations against your department for being hand in glove with the other contractors during this year’s auction. What do you have to say about this?

There is not even an iota of truth in the allegations. Everything is done as per the guidelines, rules and directions of the Excise and Taxation Commissioner (ETC), Punjab.

Then why is this controversy following the auction, re-auction and knocking on the door of the High Court?

It is actually the infighting among a number of liquor contractors and they are now falsely accusing us of partiality in auctioning of liquor vends. We have not done anything wrong. We just adhered to the guidelines of the Excise Department.

Why 826 applications received during the first auction and only six the next time?

It is because liquor business is not for those who don’t have money. Our department advertised the date of auction and people, who had sufficient amount of money to stake claim upon the liquor vends turned up this time. We have to take care of our excise revenue and nothing is more important than Rs 202 crore for the Punjab Government and Excise Department.

Why the first auction of March 27 was cancelled?

It was because of the chaos and infighting among the liquor contractors. They were pulling each other’s legs without obeying the rules and regulations. Despite our repeated requests, none of them abided by the excise policy and nobody was ready to listen to our pleas to reach at a common platform. So we ultimately informed the Excise and Taxation Commissioner, Punjab, who is vested with the powers of cancelling the auction and can reschedule it as per his convenience. We put up advertisement and rescheduled the entire process once again.

Why is it said that the entire process of first auction was planned to please a certain group of liquor contractors?

There is no truth in such allegations. If someone thinks that we have done something wrong then the doors of the ETC, Punjab Government and court are open. They may register their complaints. We do not fear as nothing wrong has been done and every aspect of the excise policy was kept in mind while auctioning and re-auctioning of vends in Bathinda.

Then why the contractor (Harish Kumar) moved the High Court, alleging unfair practice and lack of professionalism shown in the first auction?

We have left no stone unturned so that the entire process of auction could be completed in a most transparent manner. Apart from ADC (Development) Shena Aggarwal from the district administration, the Joint Commissioner of our department, Gurtej Singh, was also a witness to the entire episode, which took place at the private marriage palace. Every official and liquor contractor concerned was present during the auction and we tried our best to reconcile them.

The entire process of auction this time appears to be fishy, is it so?

It is not so as this was done again in the most transparent manner and out of the six applicants, three are now given the contract for all the liquor vends of Bathinda. They are Gagan Wine Trade and Finance Limited, Ekam Wines and Advance Wines.

Any other changes made in the sale or purchase of liquor this year?

This time we have imposed a restriction by issuing guidelines on prices of liquor. We have got orders to issue minimum and maximum retail price (MRP) so that the fleecing of customers could be reduced to a great extent. For instance, a bottle having 50 degrees of Khasa will be sold at Rs 160 to 185 and there won’t be much difference between the prices of liquor bottles across the district. Also, the complaints of overcharging by the liquor vend owners will be dealt with an iron hand.