Heavy discount on liquor is not in public interest, Delhi government told High Court

The Delhi government on Friday told the High Court that its primary objective to check responsible drinking and illicit trade in liquor is that the huge discounts offered by some liquor vends are causing “market distortions” as people are being misled. is being and is being lured. Bought liquor from them, while other licensees were running at a loss. The government said that huge discounts are not in the larger public interest.

In a written reply to a petition challenging its decision to prohibit the issuance of exemptions or exemptions by retail liquor vendors, the government submitted data relating to sales made in December, January and February and informed the court that “in February almost doubled. 2022” as compared to the monthly average sales of three years.

“For the year 2018-19, the average monthly sales in lakh liters was 136.7 (lakh litres). The average monthly sale of liquor in the year 2019-20 was 132.11 (lakh) liters. However, the sales in the month of February 2022 stood at 245.08 lakh liters,” the government said.

A total of 132.22 lakh liters were sold in February 2018; In February 2019, this number was 107.35 lakh liters, but it increased to 245.08 lakh liters in February 2022 as per government data. It said the increased sales cannot be attributed to increase in consumption alone and it cannot be a secret to such behavior “contrary to the reforms” brought in by it.

“The possibility of bootlegging cannot be ruled out as the consumption pattern cannot multiply manifold due to individual consumption as overnight people cannot start drinking alcohol twice their normal capacity,” the government said.

It further said that the moral and social responsibility of the government towards its citizens is as important as the revenue earned from the liquor trade. The government also presented statistics regarding stocks in its report, to show that the three major wholesalers did not have an equitable distribution among retailers.

“Some retailers may have purchased bulk stock for their vendors in agreement and collusion with counterpart wholesalers and began offering heavy discounts on the selling price made by other L-7Z licensees,” it said.

On 28 February, the Commissioner (Excise) stayed the offer of the exemption, saying that large crowds gathering outside liquor shops due to the exemption were causing law and order problems and also to the local population of the area. There was discomfort. It has also been said in the order that such relaxation is creating malaise in the market.

The court had on Thursday heard the petitions challenging the government and asked the state to file its reply by Thursday evening. The court has listed the matter for next hearing on Monday.