Advocates Sanjay Abott, Tanmaya Mehta and Honey Uppal moved a plea in High Court challenging the Delhi Government Order prohibiting liquor discounts. The plea has been filed by five private players holding valid L7Z licenses.
The present plea challenges the order dated February 28, 2022 passed by the Department of Excise, Entertainment and Luxury Tax of the Delhi Government. The order prohibited any discounts and concessions on the MRP on liquor in the city by retail licensees.
The petition is filed in the backdrop of the new Delhi Excise Policy approved in June last year by the Delhi government for the year 2021-2022. This policy sets out the framework for various aspects pertaining to the liquor business. Consequent to the excise policy being approved, the Delhi Government had floated tenders for zonal licenses for retail vends of Indian and foreign liquor. The petitioners participated in the tenders floated and had emerged as the successful bidders for different zones within the city.
According to the plea, giving and adopting discounts was based on arrangements as licensees could enter into with L1 licensees, and that the same was based upon free market and fair competition principles in operation.
However, the petitioner feels that without any fair opportunity of being heard and in a completely impermissible manner, the said impugned order was passed. "For that no opportunity of being heard was given before withdrawing commercial clauses having impact on civil rights of licensees. There has been total breach of natural justice," the plea states.
It adds, "For that the impugned decision of the Respondent completely take away the Petitioners right to take business decisions with regards to discounts/concessions/rebate which the petitioners were otherwise empowered to take under the new Excise policy and tender documents. 'Clauses' such as to give discounts formed an essential part of the new Excise policy scheme. Hence, the impugned to discontinue/withdraw an important clause, is in complete contradiction to the letter and spirit of the Excise Policy."
Accordingly, the plea seeks quashing of the impugned order.
Case Title: BHAGWATI TRANSFORMER CORP. AND ORS v. GOVERNMENT OF NCT OF DELHI
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