Chandigarh to hold fresh auction for allotment of 48 liquor vends

Mired in controversy since allotment of 96 liquor vends, the UT Excise and Taxation Department is going to hold a fresh auction for allotment of 48 shops.

The department had cancelled the licences of 47 liquor vends last night as the allottees had failed to submit bank guarantees worth Rs 40 crore mandated under the Excise Policy 2025-26.

According to officials, licence of one more liquor vend was cancelled today, while the Sector 20 liquor vend could also be included in the auction process as the allottee had mistakenly quoted an exorbitant bid of Rs 55.50 crore against the reserve price of Rs 7.50 crore. If the allottee failed to deposit the licence fee, the department will then forfeit the earnest money amounting to Rs 25 lakh, cancel the licence and put up the vend under auction process again.

Officials said the fresh bids could be invited from tomorrow onwards.

On March 21, the department had allotted 96 liquor vends out of total 97 through an e-auction and generated Rs 606 crore in licence fee against a reserve price of Rs 439 crore. However, nearly half the contractors have failed to meet the requirement mandated in the Excise Policy.

As per Clause 21 of the policy, each successful bidder is required to furnish a bank guarantee amounting to 15% of the licence fee within seven working days of the allotment. Non-compliance leads to cancellation of the allotment and forfeiture of the security deposit.

Darshan Singh Kler, president of Chandigarh Wine Contractors Association, had alleged cartelisation in allotment of liquor vends in the first auction. Kler had alleged that out of 96 liquor vends, 87 had been allotted to just two-three individuals operating under different firms or through their relatives, associates and employees.

The association had even filed a petition in the Punjab and Haryana High Court, alleging that the auction process violated the Excise Policy. On March 26, the High Court ordered a status quo on the allotment of vends.

However, the UT Administration moved the Supreme Court, which overturned the order, allowing the vends to open on April 3. The next hearing in the matter is scheduled for April 24. Due to Punjab’s aggressive excise policy, the UT Administration had failed to meet its Rs 1,000 crore target in the year 2024-25 and mopped up only Rs 800 crore. Twelve vends had remained unsold. The target for the fiscal 2025-26 has been reduced to Rs 800 crore. A similar shortfall was recorded in the year 2023-24 when only Rs 600 crore was collected against the target of Rs 830 crore.