Plea In High Court Challenges Delhi Govt Order Prohibiting Discounts On MRP Of Liquor

A plea has been filed in the Delhi High Court challenging an order issued by the Delhi Government prohibiting the issuance or grant of discounts or rebate or concessions by the retail licensees on MRP of liquor in the city.

The plea moved through Advocates Sanjay Abbot, Tanmaya Mehta and Honey Uppal challenges the order dated February 28, 2022 passed by the Department of Excise, Entertainment and Luxury Tax of the Delhi Government. The plea has been filed by five private players holding valid L7Z licenses.

The petition is filed in the backdrop of the new Delhi Excise Policy approved in June last year by the Delhi government for the year 2021-2022. This policy sets out the framework for various aspects pertaining to the liquor business.

Consequent to the excise policy being approved, the Delhi Government had floated tenders for zonal licences for retail vends of Indian and foreign liquor. The petitioners participated in the tenders floated and had emerged as the successful bidders for different zones within the city.

The plea avers that the discounts were permitted and the licensees were giving and adopting discounts. According to the petitioners, the same was based on arrangements as licensees could enter into with L1 licensees, and that the same was free market and fair competition principles in operation.

However, it is the petitioners' case that without any opportunity of hearing and in a completely impermissible manner, the Delhi Government had passed the impugned order prohibiting the grant of discounts or rebates and concessions.

"For that no opportunity of being heard was given before withdrawing commercial clauses having impact on civil rights of licensees. There has been total breach of natural justice," the plea states.

It adds, "For that the impugned decision of the Respondent completely take away the Petitioners right to take business decisions with regards to discounts/concessions/rebate which the petitioners were otherwise empowered to take under the new Excise policy and tender documents. 'Clauses' such as to give discounts formed an essential part of the new Excise policy scheme. Hence, the impugned to discontinue/withdraw an important clause, is in complete contradiction to the letter and spirit of the Excise Policy."

Accordingly, the plea seeks quashing of the impugned order.

Case Title: BHAGWATI TRANSFORMER CORP. AND ORS v. GOVERNMENT OF NCT OF DELHI