UT mulls re-auction of vends on basis of previous top bids
The UT Excise and Taxation Department has planned to hold a re-auction of 48 liquor vends on the basis of previous highest bids.
The department had cancelled the licences of 48 liquor vends as the allottees had failed to submit bank guarantees mandated under the Excise Policy 2025-26. Now, the department is mulling over re-auctioning these 48 vends based on the previous highest bids, instead of a reserve price. The department has earned nearly Rs 23 crore from the cancelled liquor vends in the form of earnest money and security deposits.
On March 21, the department allotted 96 liquor vends out of a total of 97 through an e-auction and generated Rs 606 crore in licence fee against total reserve price of Rs 439 crore. However, nearly half the contractors failed to meet the requirements mandated in the Excise Policy, leading to cancellation of their allotment.
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, had alleged cartelisation in the allotment of liquor vends. He alleged out of 96 liquor vends, 87 had been allotted to just two-three individuals operating under different firms or through their relatives, associates and employees.
The association has filed a petition in the Punjab and Haryana High Court, alleging that the auction process violated the Excise Policy. On March 26, the High Court ordered a status quo on the allotment of vends. The next hearing in the matter is scheduled for April 24.
Bank guarantee default
On March 21, the department allotted 96 liquor vends out of a total of 97 through an e-auction and generated Rs 606 crore in licence fee against total reserve price of Rs 439 crore. However, nearly half the contractors failed to meet the requirement of bank guarantee mandated in the Excise Policy, leading to cancellation of their allotment.
Chandigarh