New Delhi: Excise Department orders discontinuation of discounts on MRP of liquor
Feb 28, 2022
New Delhi [India], March 1 : The Excise Department of the Delhi government on Monday ordered the discontinuation of discounts on MRP of liquor in the national capital.
The decision was taken after liquor stores in several areas of Delhi witnessed long queues of people as some outlets offered discounts on different brands of alcohol.
"It has been brought to the notice of the Department that as a result of discounts being offered by the licences through their retail vends, there are instances reported of large crowds gathering outside the liquor stores leading to law and order problems and causing inconvenience to the local population of an area. It is also to be kept in mind that the COVID situation is not yet over and the danger of COVID-19 still persists. Therefore, the huge crowds are likely to aggravate the rise in the COVID cases in Delhi," said the Excise Department order.
The Delhi government said that such discounting is also leading to unhealthy market practices deployed purely for short-term business gains by some of the licensees and is leading to the distortions of the Market.
The order said the intent of the government in regard to discounting was to promote consumer choice and healthy competition and determination of price by market forces. The discounting of this nature was not the objective of the government while permitting the discounts in the new Excise Regime.
The licensees are seen indulging in various promotional activities through social media and banners or hoardings being placed outside the stores which is a non-permissible activity under the Delhi Excise Act, 2009 and Delhi Excise Rules, 2010, said the Excise Department
"Commissioner Excise hereby orders that the all L7Z licensees shall neither give concession, rebate or discount on the MRP of liquor and hereby directs all L7Z licensees to strictly abide by Rule 54 (3) of the Delhi Excise Rules, 2010 In case, any such instance of discount/rebate/concession is brought to the knowledge of the undersigned, action as per Rules and Act as well as the penal action as per the tender document shall be initiated against the defaulting licensee," the order stated.
