42 liquor vends sealed over Rs 33 cr bank guarantee default in Chandigarh
Within eight days after the implementation of the Excise Policy 2025-26, the UT Excise and Taxation Department today sealed 42 liquor vends. According to officials, the vends were sealed as the allottees have failed to submit bank guarantees worth Rs 33 crore mandated in the new policy.
On March 21, the department allotted 96 liquor vends through an auction, generating Rs 606 crore in licence fee against a reserve price of Rs 439 crore. However, nearly half the contractors have failed to meet the compliance requirement mandated in the new 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 after 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, slammed the department for allegedly bending rules. “The department must not accept bank guarantees after the deadline, as it violates policy norms and creates an uneven playing field,” he said. He demanded the publication of a list of successful bidders with the exact date and time of their bank guarantee submissions to ensure accountability.
The Punjab and Haryana High Court is currently hearing multiple petitions alleging that the auction process violated the Excise Policy. The petitioners have claimed that one family and its affiliates bagged 87 out of 96 vends, hinting at cartelisation.
On March 26, the High Court ordered a status quo on the vend allotment. 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 2024-25, collecting only Rs 800 crore. Twelve vends remained unsold.
The target for 2025-26 has been reduced to Rs 800 crore. A similar shortfall was recorded in 2023-24 when only Rs 600 crore was collected against the target of Rs 830 crore.
Chandigarh