Delhi High Court Issues Notice On Plea Challenging New Policy To Not Grant Retail Liquor License To State Undertakings

The Delhi High Court on Thursday sought response from the Delhi Government on a petition challenging Clause 2.4 of the Tender conditions of its New Excise Policy 2021. The provision states that retail licenses shall not be granted to any company or society, owned by any State Government or its undertaking.

The petition has been filed by the Delhi Consumer Cooperative Wholesale Store Karamchari Union through Advocate Satya Sabharwal. The Union claims that the aforesaid provision directly affects their employment and livelihood inasmuch as their employer- Delhi Consumers' Co-operative Wholesale Store Ltd.- which runs 75 liquor vends in the national capital, will become ineligible for obtaining liquor licenses under the new policy.

It is pointed out that Delhi Government holds a significant share in their employer-company and hence, it will not be eligible for obtaining retail licenses under the new policy, therefore affecting the lives and families of 350 persons.

"Any policy depriving livelihood, an integral part of Right to Life guaranteed under Article 21 of the Constitution is arbitrary. Moreover, in these tough times of COVID- 19 when the pandemic comes in waves, livelihood/employment is of essential and may not be deprived," the plea stated.

Senior Advocate Mamninder Singh led arguments for the Petitioner. "This is Article 21 violation of employees," he stated.

Accordingly, a Division Bench of Chief Justice DN Patel and Justice Jyoti Singh directed the State to file its counter affidavit within 2 weeks and posted the matter for hearing on August 27.

During the course of hearing, Senior Advocate AM Singhvi appeared for the Respondents, with GNCTD counsel Rahul Mehra.

Singhvi argued that in the garb of petition for benefit of employees, it is a "proxy litigation" on pat of the retailers who had failed to obtain relief from as many as 8 benches. "We as lawyers know when employees are strategically pressed into service," he remarked.

Notice was issued by the High Court on a petition yesterday, assailing the decision to not open government liquor stores for sale of IMFL/ foreign liquor. That plea states, "consumers of the liquor are also going to be affected in as much as they are assured about the quality of the liquor when they purchase from the Govt. vends whereas the said assurance shall not be there in case of private vends."