Explained: Meant to boost revenue, Delhi’s new liquor policy ran into trouble from early on

The Delhi government’s liquor policy has faced stiff opposition ever since it was announced. While the AAP government maintains it would end the liquor mafia, the BJP has accused it of allowing liquor shops close to schools and places of worship.

What is Delhi’s liquor policy?

Proposed in 2020, it came into effect in November 2021. Delhi was divided into 32 zones with each zone having 27 liquor vends. It also marked the exit of the government from selling liquor — only private liquor shops now run in the city and each municipal ward has 2-3 vends. It aimed to end the liquor mafia and black marketing, increase revenue and improve consumer experience, and ensure equitable distribution of liquor vends. The government also made rules flexible for licencees such as allowing them to offer discounts and set their own prices instead of selling on MRP fixed by the government. Following this, discounts were offered by vendors, which attracted crowds. After protests by opposition, the excise department withdrew discounts for some time.

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What changes were made in awarding tenders?

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Several licensees faced problems in getting permission to open shops in non-conforming areas due to protests by the MCD, opposition and the public. To this end, the excise department allowed them to open additional vends in conforming areas without taking approval of the competent authority.  A total of 849 liquor store licences were issued by Delhi government last year, but several liquor shops closed due to financial losses. From 849 shops, it came down to 649 stores May. This dropped to 464 in June.

What does the chief secretary’s report say?

According to officials, if changes are made/proposed after implementing the policy, the excise department needs to place it before the Cabinet and forward it to L-G for approval. Chief secretary Naresh Kumar, when appointed in April, found alleged “procedural lapses” and asked the Excise department to reply. The report was sent to the L-G on July 8. The department replied to the questions on July 12.