Punjab & Haryana HC rules liquor vends allotment subject to outcome of petition challenging Chandigarh’s excise policy

Saurabh Malik

Tribune News Service

Chandigarh, June 23

The Punjab and Haryana High Court on Tuesday ruled that the allotment of liquor vends would be subject to the final outcome of a writ petition challenging Chandigarh’s excise policy for 2020-21.

The Bench also issued notice of motion for July 8 to the Chandigarh administration and other respondents.

The notice and the assertion came after the Bench of Justices Rajan Gupta and Karamjit Singh was told that certain departmental stores had been given the licence to sell foreign liquor at Rs 20 lakh while the L-2 retailers had to pay approximately Rs 4 crore as licence fees.

As the petition filed by Rajbir Singh came up for hearing through video conferencing, senior advocate Anand Chhibbar described the policy adopted by the administration as “wholly arbitrary” and beyond the “scope of legislative bounds”.

Chhibbar submitted that the policy was leading to complete cartelisation and monopoly of certain individuals through their firms.

Accepting the notice, senior panel counsel Ajay Jagga with advocate Saurabh Goel prayed for a time of 10 days to file a reply.

“The same be filed within the time given with advance copy to counsel for the petitioner.  Allotments which have been made meanwhile shall be subject to final outcome of this writ petition,” the Bench added.

Referring to the provisions of the excise policy, Chhibbar said it was not promoting free trade. Elaborating, he submitted that the policy stated that there would be five wholesale licencees for any brand of foreign liquor, which shall sell liquor to all retail licencees.

Chhibbar added that big retail players had obtained authorisation for foreign brands, which has harmed independent retail outlets like the petitioner

Giving reasons, Chhibbar added instead of buying foreign liquor directly from a reputed manufacturer, the petitioner now as left at the mercy of the competitor retailer having wholesale authorisation for a particular foreign brand.

“This is one way that cartelisation of foreign trade in Chandigarh has empowered few big retailers, from whom the petitioner is forced to buy foreign liquor. Hence, the petitioner is always come at competitive disadvantage,” Chhibbar added.