New Excise Policy: High Court Seeks Delhi Govt's Stand Over Constitution Of Committee For Identification Of Conforming & Non Conforming Wards

In relation to the new Excise Policy 2021-22, the Delhi High Court has sought the stand of the Delhi Government over constitution of a committee for identification of confirming and non conforming wards, based not only on the restrictions which flow from the statutory rules or bye- laws framed by respective Municipal Corporations but also the locational restrictions imposed in terms of the policy itself.

Justice Yashwant Varma suggested that the said Committee may comprise of representatives of the Department of Excise, the four Municipal Corporations, DDA and other stakeholders as may be deemed appropriate by the Delhi Government.

It also suggested that the committee may also be charged with dealing with any representations that may be submitted by licensees asserting wards to be non-conforming as also the receipt of representations by such of the licensees who may have an objection to the inclusion of certain wards in the list of conforming areas.

"The committee which the Government is being requested to consider constituting would be obliged to draw up a list of conforming and non-conforming wards and locations falling therein based not just on the restrictions which flow from the statutory rules or the bye- laws framed by the respective Municipal Corporations but also bearing in mind the locational restrictions which stand imposed in terms of the policy itself," the Court added.

Accordingly, while listing the matter for further hearing today, the Court asked the counsels representing the Delhi Government to take appropriate instructions and also to convey the request to the Lt. Governor to consider the constitution of an appropriate committee on suggested lines.

The Court was dealing with a bunch of pleas challenging the validity of a circular issued by the Delhi Government dated 17 November 2021 in purported implementation of the Excise Policy for the year 2021-2022.

The dispute arose in the context of the petitioners having been unable to open retail vends in "non-conforming" areas. Referring to the provisions made in the policy itself, Senior Counsels appearing for the petitioners contended that the underlying thread of the policy was based on the stated objective of ensuring equitable distribution of liquor vends across all wards with emphasis being laid on unserved as well as under-served areas.

It was also submitted that while the 272 wards were divided into 30 zones, the licensees were mandatorily required to establish at least two vends in each ward falling in a particular zone.

It was also submitted that the Government had categorically held that liquor vends would be established in all areas including those which may have been non-conforming and that it was based on the promises and assurances that the petitioners had structured and submitted their bids.

On the other hand, the Delhi Government submitted that the terms and conditions on the basis of which offers were invited did not hold out any promise or guarantee to the petitioners enabling them to establish retail vends even in non-conforming areas.

It was argued that the Government had only held out that it would be obliged to facilitate the licensees in the establishment of liquor vends. It was added that the Government had at no stage held out any promise that the establishment of retail vends would be permitted without the requisite approvals and permissions of the concerned Municipal Corporations or the DDA being obtained.

"It is also pertinent to note that apart from the restrictions on the establishment of a retail vend which may stand attracted in terms of the rules or the relevant bye-laws framed by the individual Municipal Corporations, the policy itself places various restrictions with respect to the location of liquor vends," the Court noted at the outset.

Accordingly, the Court was of the view that in order to put a quietus to the controversy, it would be appropriate to request the Delhi Government to consider the constitution of a committee which may examine the factual situation prevailing in different wards and the localities forming part thereof so that an authoritative list of conforming and non-conforming wards is duly prepared after due verification.

"The identification of non-confirming wards would enable the Court to rule on the rival submissions addressed as well as to consider the final directions that may be warranted," the Court said.

The Court also added that the comprehensive exercise for identification of conforming and non-conforming wards would ultimately place for the consideration of the Court an authoritative list on the basis of which the legal questions which are addressed may be decided.

The matter will now be heard today, listed on the top of the board.

Case Title: JSN INFRATECH LLP v. GOVERNMENT OF NCT OF DELHI & ORS. & other connected matters

Click Here To Read Order