TWO WRIT PETITIONS FILED BY PUNE BASED UHA SEEKING RELIEF IN EXCISE LICENSES

27th May 2021

Last week two writ petitions were filed by Pune based United Hospitality Association seeking relief in Bank loans and Excise Licenses.

The UHA's first Writ petition sought a waiver of the FL - III license fee. They submitted that the state excise department issued a circular, setting a schedule for payment of license fee on an installation basis. The circular has also set an unreasonable condition on the licence-holders that they should pay wages to their employees during the lockdown. Moreover, the license fee was fixed in January 2021 without considering the subsequent 2nd wave of Covid 19, resulting in lockdown. They also did not consider extending the deadline for payment of the fee. At the same time, they demanded that the License holder shall pay the amount before March 31st, 2021.

The second writ was filed against the Union finance minister, Finance minister, NDMA and RBI. The UHA submitted that they aggrieved by the inaction of the RBI in issuing an instruction to all banks, whether commercial or cooperative or All India financial institutions, to grant an appropriate period of time on payment of instalment due and to restrict banks from declaring NPA.

As per the reports, in 2020, the government took 50% of the licenses fee, but UHA members only worked and earned for two months. This year, they want full fees when there is no business at all. Therefore, it is prayed to quash the government's notification and reduce the license fees.

Author: Papiha Ghoshal