DELHI HC REFUSED TO STAY ON THE ORDER PASSED BY THE DELHI GOVERNMENT ON PROHIBITION OF DISCOUNT ON LIQUOR

The Delhi High Court refused to stay on the Delhi Government's order through which it had prohibited discounts on the sale of liquor in the capital. 

In this instant case, on February 28, the Delhi excise commissioner passed an order to discontinue any discount or refund on the Maximum Retail Price (MRP) of liquor in Delhi. The order cited unhealthy market practices and large crowds at liquor stores as the reason for the discontinuation.

A batch of petitions was filed before the HC challenged the order. It stated that the order was against the government’s own liquor policy. The policy expressly permits discounts by the retailers. 

Senior Advocates Mukul Rohatgi and Sajan Poovayya argued that the retailers were provided with the licenses with the discount policy as a part of the terms of the license. The reasons cited by the Excise Commissioner are meritless. Further, the order was passed based on petitions of unidentified licensees who stated that since they cannot give discounts others should also be prohibited.

Counsel appearing for the government argued that the State cannot be a mute spectator to the efforts made by some industries trying to create a monopolistic market. Further said that under the Excise Act & Rules, the Excise Commissioner is empowered to limit the extent of discounts on liquor.

It was further contended that because of the discounts given on liquor, some individuals have started hoarding liquor and transporting it outside Delhi for sale, which is prohibited under law.