Daijiworld Media Network- Chandigarh
Chandigarh, Apr 9: In a significant enforcement move, the Chandigarh Excise and Taxation Department sealed 42 liquor vends within just eight days of the rollout of the Excise Policy 2025-26. The action comes after the allottees failed to submit bank guarantees worth Rs 33 crore as mandated under the new policy norms.
According to officials, the department had allotted 96 liquor vends through an auction held on March 21, which fetched a revenue of Rs 606 crore in licence fees — well above the reserve price of Rs 439 crore. However, nearly half of the contractors failed to comply with Clause 21 of the Excise Policy, which requires submission of a bank guarantee equivalent to 15% of the licence fee within seven working days of allotment.
Failure to adhere to this clause results in cancellation of allotment and forfeiture of the security deposit, officials confirmed.
Raising strong objections, Darshan Singh Kler, president of the Chandigarh Wine Contractors Association, accused the department of violating its own policy rules. “The authorities must not accept late submissions of bank guarantees. Doing so not only breaches the policy but also compromises fairness,” he stated. Kler also demanded that a detailed list of successful bidders, along with date and time of guarantee submission, be made public to ensure transparency.
Meanwhile, the allotment process is under legal scrutiny. Multiple petitions have been filed in the Punjab and Haryana High Court, alleging irregularities in the auction. Petitioners have raised concerns of cartelisation, claiming that 87 out of the 96 vends were won by one family and its affiliates.
The High Court had earlier imposed a status quo on the allotment on March 26, but the UT Administration appealed to the Supreme Court, which set aside the stay order and allowed the opening of vends from April 3. The next hearing in the High Court is scheduled for April 24.
Sources in the administration reveal that due to Punjab’s aggressive excise policy, Chandigarh’s target of Rs 1,000 crore in excise revenue for 2024-25 fell short, with only Rs 800 crore collected. Twelve vends also remained unsold during the auction.
For the current fiscal year 2025-26, the UT has revised its target down to Rs 800 crore, in line with past trends. In 2023-24, the administration had collected only Rs 600 crore against the set target of Rs 830 crore.
As the row continues, all eyes are now on the High Court’s next move, which could have far-reaching implications on the excise landscape of the Union Territory.