Delhi Govt. Denies On Prohibiting Discounts/Rebate On Liquor

Mr. Singhvi said the discounting schemes were bringing arbitrage between states.

New Delhi: Delhi government opposed the pleas challenging its decision prohibiting any discount or rebate on the MRP of liquor in the national capital and told the Delhi High Court that this was giving rise to bootlegging activity.

According to the Justice V Kameswar Rao heard the counsel for the Delhi government and various liquor license holders and reserved order on the petitioners' applications for interim relief to stay the decision on the ground that it was causing them an irreparable loss on account of the substantial decrease in their business.

The applications were filed in the petitions challenging the Delhi excise commissioner's February 28 order discontinuing any discount or rebate on the Maximum Retail Price (MRP) of liquor here.

Talking notes from Delhi Govt. order, on February 28, the Delhi excise commissioner had passed an order discontinuing any discount or rebate on the MRP of liquor in the national capital.

The order referred to reports of large crowds at liquor stores as well as unhealthy market practices as the reason for the discontinuation of the discounts and said that the vendors are indulging in promotional activities which are prohibited under the Delhi Excise Act.

Senior advocates AM Singhvi and Rahul Mehra are representing the Delhi Govt. They opposed the pleas saying the government will not step in till the dealers carry the business fairly and transparently and it stepped in only after coming to know that bootlegging was going.

Advocate Singhvi said the discounting schemes were bringing arbitrage between Delhi and UP, Delhi and Haryana, and Delhi and Himachal Pradesh.

Adding details, advocate Mehra said in the new excise regime, Delhi has the cheapest liquor and when the government came to know that bootlegging was going on, it stepped in.

Senior advocates Mukul Rohatgi and Sajan Poovayya, who represented several petitioners, argued that the Delhi government order was passed by the concerned authority without any jurisdiction and was perverse and arbitrary.

While contouring the Delhi Govt., advocate Poovayya contended that once the tender is called for and licences are issued, it is not open for the authorities to make changes in the tender conditions in that excise year unless there is a change in the law.

“When an order is passed by the commissioner, it has to be tested on merits of what the order contains,” he said, adding that the moment there is an MRP system, the dealers have the freedom to give discounts under the excise policy.