71K applicants for 5,000 vends; auction awaits EC nod

Aman Sood

Tribune News Service

Patiala, March 17

After a lull of almost four years when liquor contractors in the state have faced losses, contractors have shown interest for the 2019-20 liquor trade. Subject to clearance by the Election Commission of India, over 71,000 applicants have vied for over 5,000 liquor vends as per applications received till Saturday — the last date.

The state Excise Department wants to carry out the auctions of liquor vends for the next fiscal — on March 20. Though cleared by the Cabinet before the poll code came into effect, the policy will require a go-ahead from the Election Commission because it involves auction of shops. Each auction needs the poll panel’s clearance. The state government expects to collect Rs 6,201 crore through liquor sale during the next fiscal as against anticipated mobilisation of Rs 5,462 crore for 2018-19.

Given the fact that a majority of the liquor trade in the state is owned by politicians, the Election Commission nod will also take into account the decision of allowing increased quota of PML (country liquor) from 5.78 crore proof litres to 6.36 crore litre and the quota of India Made Foreign Liquor (IMFL) increased from 2.48 crore proof litre to 2.62 crore proof litre. There has been a 16 per cent increase in the quota of low alcoholic beverage such as beer from 2.57 crore bulk litres to 3.00 crore bulk litres. All of this is subject to the ECI nod and “permission for a go ahead is awaited” considering the facts.

The overwhelming response has taken the department by surprise as it has already collected Rs 215 crore as application money, which is three times as compared to that received last year.

“We have sent the file for necessary go ahead from the Punjab Election Office. Once approved, the draw of lots will be held in all districts under the observation of our officers,” said Gurtej Singh, Additional Excise and Taxation Commissioner.

“It is a formality given the fact that similar auctions were conducted under the model code of conduct in March 2009 and 2014,” he said.

However, election officials said the challenge this time was that liquor contractors (licensees) have been allowed to carry forward their unsold quota of liquor of 2018-19 to next year i.e. 2019-20 with a nominal fee. “The challenge is to check the sale of bulk buying of liquor as contractors extend discounts nearing March 31. With politicians backing a majority of liquor business, the EC will have their eyes on all such sales,” said an official attached with the election office.

Punjab Chief Electoral Officer S Karna Raju told The Tribune that an application “seeking permission for the auctions” had been forwarded to the EC. “We will take further call after receiving any reply from them,” he added.