Need To Challenge Constitutionality Of Policy, Liqour Supply Not Essential For Public: P&H HC In Plea Against Allotment Of Liqour Licenses In Chandigarh

The Punjab & Haryana High Court today asked the petitioner challenging the allotment of liquor vends under Chandigarh liquor policy, to challenge its constitutionality.

As per U.T. Excise Policy 2025-2026 Clause 14 (Mode of Allotment), in order to curb the monopoly by single person or entity, the policy specifically restricted the allotment of more than 10 licenses vends to single person or entity.

It was alleged in a recent bid, a family and their associates, have got 87 out of 97 vends.

Justice Sureshwar Thakur and Justice Vikas Suri while asking the petitioner,  to amend the plea to challenge the constitutionality of the Policy said, "The area of participation is large to ensure that it is not rigged... You need to challenge the constitutionality of the policy...Liquor is not very important for the public; it is not an essential commodity. The supply can wait."

The Court was hearing three pleas filed by Liquor Companies, seeking quashing of the entire tendering process and allotment of 87 liquor vends in favour of bidders allegedly controlled by only one family.

The UT Administration, on the basis of Policy 2025-26 invited bids in respect of allocation of different licenses of liquor including manufacturing, wholesale as well as retail.

It was submitted that the policy itself prohibits more than 10 licences to be issued to an entity which also includes persons having same partners, directors or associates in order to avoid cartelization.

The Plea filed by Vault Liquor Private Limited, stated it found that a family and their associates, have got 87 vends out of 97 vends and thereby will be totally monopolizing and controlling the entire Chandigarh by manipulating the record.

It was contended that it is established that even the bidding has been rigged by virtue of the fact that 12 cartel members did not participate in cross bidding in respect of these vends and bidding pattern thereby causing the loss to state exchequer.

"The association has also submitted complete facts to the respondents and has prepared the report with facts to clearly establish the factum of rigging and cartelization. However, for the reasons best known to the respondents they are continuing with the process of allotment without considering that it is in complete violation of clause 14 of the policy as well as other guidelines issued by the Central Government in this regard," it added.

While directing to maintain status quo in the matter, the Court listed the matter for April 03, to challenge the vires of the policy.

Senior advocate Chetan Mittal appeared for petitioner Vault Liquor Private Limited.

Senior Advocate Puneet Bali appeared for petitioner M/S Kler Wines & Co.

Senior Advocate Gurminder Singh appeared for respondent Sahil Garg (through Vinayak Distilleries Private Ltd).

Senior Advocate Amit Jhanji for UT administration.

Title: Vault Liquor Private Limited v. UT Chandigarh [along with connected matters]