Delhi High Court seeks response from from Central, State govts on new Excise Policy

The Delhi High Court on Thursday sought the response of the Central and State governments on a petition challenging the new Excise Policy 2021-22 as 'arbitrary' and in contravention of the Delhi Excise Act, 2009. [Ashiana Towers and Promoters Ltd & Anr. Vs. Govt. of NCT of Delhi & Ors.].Notice was issued to the Central government and Delhi government by a Division Bench of Chief Justice DN Patel and Justice Jyoti Singh.The Court was hearing a fresh challenge to the new Excise Policy, 2021-22. The petitioner prayed that the e-tender notice issued by the Delhi Government on June 28, 2021 is quashed.The notice prescribed the procedure to be followed while inviting zone-wise electronic bids pertaining to the grant of 32 different zonal licenses of retail vends of liquor for supply in Delhi NCR.Appearing on behalf of the petitioner companies before the Court, advocate Sanyam Khetarpal submitted that he was challenging the new policy on ground of an arbitrary tender requirement that mandates a minimum net worth of Rs. 6 crores. Khetarpal informed the Court that the new policy has divided Delhi into 32 different zones, creating an unfair monopoly against the interests of small players in the liquor business."They have divided Delhi into 32 different zones and one entity is made to pay the fees for one entire zone which comprises of 27 vends. The question the becomes, what will happen to the small players," he demanded. Chief Justice DN Patel asked what was wrong in dividing the State into zones."There is something wrong but I don't know what it is. Something is violating some law. Are you saying that there should be no zone? In that case, why have districts also? Who are you to say these absurd things," the CJ asked. To this advocate Khetarpal replied saying, "There are 100-120 license holders in Delhi right now. One entity is entitled to two zones and not more. If one entity can hold two zones, there will be only 16 players operating in the market. Where will the others go?" The Court stated that the policy was for the welfare of the public and not to run or increase anyone's business. Neither was it to put anyone in difficulty, the Court reiterated. Senior Advocate Dr. Abhishek Manu Singhvi, appearing on behalf of the Delhi Government stated, "I'm sorry but this is nothing but a full-scale assault on us. Writs are being filed everyday in this matter. One bench has already heard it and given a date for August 9, 2021."Singhvi also submitted that the new Policy was made with a view to reduce corruption and ensure free and fair competition. He also submitted that he shall put in his reply before the Court..Advocate Santosh Kumar Tripathi, standing counsel for the Delhi government also added that all of the petitioners in this case were seasoned in the liquor business..Read order here: