On Monday, the Delhi government announced that no more discounts will be given on the MRP (Maximum retail price) of liquors in Delhi. The move came after the following incidents of violence and overcrowding, due to private shops offering as much as 35% discount on liquors to clear up their stock.
Citing the reason of law and order in the national capital, the Excise department in their statement said, “It has been brought to the notice of the department that as a result of the 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 problem and causing inconvenience to the local population of an area.”
Further stating the lingering danger of COVID19, the department said, “It is also to be kept in mind that the Covid situation is not yet over and the danger of Covid-19 still persists and therefore the huge crowds are likely to aggravate the rise in cases in Delhi.”
The Delhi government also claimed that such discounts were leading to “unhealthy market practices deployed purely for short term business gains” by some licensees in the capital.
The Liquor shops in Delhi have been offering heavy discounts on MRP in a bid to sell off their existing stock by the end of March when liquor licenses are up for renewal.
According to the Delhi government’s new Excise Policy, liquor stores could offer up to 35% discounts on certain alcohol brands which led to this stock clearance chaos.
Under the new excise policy implemented last November, over 580 liquor shops have been opened by private firms. The Excise department has allotted 849 licences for retail liquor sales to private parties through the tender process.