Miffed, Chandigarh liquor contractors decide not to send suggestions for excise policy

Eighteen liquor vends out of 95 were not auctioned, causing a loss of nearly Rs 150 crore this year, the president of the Chandigarh Wine Contractors Association said, blaming the UT’s ‘rigid’ excise policy

3 min readChandigarhDec 2, 2023 03:29 PM IST

The Chandigarh Wine Contractors Association, an umbrella body of 77 liquor vend owners, decided on Saturday that it would not participate in the exercise even if the date was extended. (File)

Upset over Chandigarh’s ‘rigid’ excise policy and the losses they have allegedly suffered due to neighbouring Punjab’s ‘flexible’ policy, the Chandigarh Wine Contractors Association has decided not to submit suggestions for next year’s policy.

“Throughout the year, we urged the administration to make necessary changes in its liquor policy but all fell on deaf ears. The result? At least 18 liquor vends out of 95 were not auctioned causing a loss of approximately Rs 150 crore to the state exchequer in the current financial year,” Darshan Singh Kaler, president of the association, said.

With the current excise policy set to end on March 31, 2024, the UT excise department had sought suggestions in the first week of November, with a submission deadline of November 30.

The Chandigarh Wine Contractors Association, an umbrella body of 77 liquor vend owners, decided on Saturday that it would not participate in the exercise even if the date was extended.

“We collectively decided not to participate in the formation of Excise Policy 2024-25, considering the experience of the last two years. The rigid excise policy of the UT administration contrasts with the flexible liquor policy in Punjab, where liquor contractors are not bound to pick a fixed quota of liquor cartons,” Kaler added.

“It is well known that the liquor contractors in Chandigarh are facing immense losses. Worse, the administration is trying to recover this loss from us by shifting the liquor quota of the non-auctioned 18 vends to us. Inviting suggestions from stakeholders like us is merely eyewash,” Kaler added.

Sanjeev Garg, a liquor contractor, emphasised the need for a cut in the liquor quota. “As liquor prices in Punjab are similar or lower than those in Chandigarh, liquor sales in Chandigarh have declined. We face penalties for falling short of picking a certain fixed quota of liquor cartons from distilleries. The penalty for not picking each IMFL and IFL carton from the plant is Rs 900 and Rs 3,500, respectively. In Punjab, there is no fixed quota and contractors pick stock based on their requirements. If VAT on liquor is 12 per cent in Chandigarh, it is merely 1 per cent in Punjab,” he said.

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The UT excise department had set a revenue target of Rs 830 crore for 2023-24 but collected only Rs 600 crore. The main revenue comes from licence fees for the vends, which range from Rs 3 crore to Rs 15 crore, depending on their location.

A senior UT excise department officer acknowledged the limited suggestions from liquor contractors, saying the excise policy in Punjab was under consideration and all concerns were being taken into account.

The suggestions received include the installation of alcohol sensors in taverns or ahatas, prohibition of cooking non-veg items in open verandas outside taverns, and increasing the distance of liquor vends from educational institutes from 100 metres to 200 metres.

Saurabh Parashar

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

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