Delhi Govt extends excise policy for 9 months

Even as internal discussions continue within the BJP-led Delhi government over the formulation of a fresh excise policy, the Excise Department on Friday extended the existing regime for another nine months.

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“The competent authority has granted approval for continuation of the excise duty-based regime, which has been in effect since licensing year 2022-23, for excise year 2025-26 for the grant of wholesale licences on the same terms and conditions,” read an official order issued by Deputy Commissioner (Excise) Tanvir Ahmed.

The order further stated that the terms and conditions of all licences, which are renewed annually, will remain unchanged for the upcoming excise year. All relevant branches dealing with licences and permits have been directed to issue necessary circulars accordingly.

Under the current system, the Delhi Government annually frames an excise policy, under which L-1 licences are granted for wholesale liquor vending to companies, societies, partnerships or proprietorship firms that own distilleries, breweries or manufacturing units.

The previous AAP-led government had introduced a revamped excise policy in 2021 with the aim of boosting revenue and modernising the liquor trade. Rolled out in November that year, it allowed private bidders to operate 849 retail vends across 32 city zones. However, the policy was scrapped on August 31, 2022, following serious allegations of corruption and irregularities in the licensing process.

Top sources in the Delhi Government told The Tribune that there has been a shortage of popular and high-quality liquor brands, including whisky, beer, vodka and gin, after their parent companies were blacklisted from selling in the national capital due to complaints and ongoing court cases linked to the scrapped policy.

Following the change in political leadership, the new BJP Government constituted a high-level committee to draft a revised excise policy aimed at addressing the challenges of both current system and previous regime. According to the sources, the framework of the proposed policy is still in its early stages and, once finalised, will be submitted to the Cabinet for approval.