Excise department asks restaurants-bars to install CCTV cameras

The Delhi government has invited applications from hotels, clubs, motels, bars and restaurants for serving liquor on their premises.

The government has already allocated fresh licences for 850 vends for retail sale of liquor in 32 zones across the national capital.

"Delhi government has decided to grant the licence in the form of L-15, L-16, L-17, L-19, L-20, L-21, L-28 and L-29 under new excise policy to be implemented with effect from November 17 for the service at licenced premises for 'on-site consumption' (Indian and Foreign liquor) in the National Capital Territory of Delhi for the licencing year 2021-22," shared the order issued by the excise department on Monday.

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The order asks applicants to download the required forms from the excise department website and submit it with complete information and supporting documents.

The licence categories for 'on-site consumption' are: service of Indian and Foreign liquor in a hotel, motel, guest house to residents in their rooms (L15), bar/restaurant attached to a hotel (L16), independent restaurant (L17), independent restaurant located either in arrival or departure area of international airport (L19).

Other licence categories are service of Indian and Foreign liquor in a bar/dining car in a luxury train (L20), round the clock service/sale of liquor in a bar attached to a hotel located either in arrival or departure area of international airport (L21), club exclusively for serving or retired officers of government and armed forces (L29).

According to terms and conditions for the on-site consumption licences, the licence holder will require to purchase liquor from retail vends and may store liquor anywhere on the premises.

The licensees will be allowed to serve liquor and beer in glasses or bottles while ensuring that it's not taken outside the premises.

The price of beer in Uttar Pradesh will be reduced by Rs 20 from April 1 as per the new excise policy of the state government.

While buying beer will be cheaper in the state, there will be an increase in the price of Indian and English liquor.

The price of different brands of English liquor has been increased by 15 to 20 per cent.

Also Read: Restaurateurs welcome new excise policy by Delhi Govt, says it will boost revenue

There is no change in the excise duty and license fee of beer, but its prices are being reduced to increase the consumption of beer in Uttar Pradesh.

The sale of beer was badly affected due to the COVID-19 pandemic. The sale at beer shops from April 2020 to November 2020 has been only 17.28 crore bottles in the state against 27.08 crore bottles last year, which is approximately 36 per cent less.

Therefore, the government has decided not to change the annual license fee of retail shops of beer.

As per the Excise Policy for the year 2020-21, the maximum retail price (MRP) of beer is higher than neighbouring states of Uttar Pradesh like Delhi, Haryana and Punjab. The price of beer is also higher than those states which are prone to smuggling. Additionally, the yield charge on beer is higher than that of foreign wines, depending on the alcohol content.

May Interest: Excise department asks restaurants-bars to install CCTV cameras

The increase in license fees by seven and a half per cent is the main reason behind this increase in the prices of domestic and English liquor from April 1.

The Authentication Solution Providers' Association (ASPA) has claimed that the Uttar Pradesh excise department's move to replace holographic liquor tax stamps with plain barcoded stamps can be easily counterfeited and can lead to ill-fated hooch tragedies.

The association has directed the state government to review the existing excise policy and to implement a solution recommended by experts and bodies of the global anti-counterfeiting industry. 

In compliance with the move to implement track and trace technology according to the state's 2018-19 excise policy, the Department of Excise, Uttar Pradesh, replaced secured holographic liquor tax stamps with plain bar coded stamps devoid of any physical security features.

UK Gupta, President of ASPA, said, "We request the state government and state excise to review the existing excise policy and implement a solution that is recommended by experts and bodies of the global anti-counterfeiting industry. This will help in ensuring consumer safety, easy identification of genuine products, plugging leakages in supply chain and enhancing revenue for the exchequer."

The Uttar Pradesh government has suffered a loss of about Rs 5000 crore following the Supreme Court order banning all liquor shops along national as well as state highways.

UP excise minister Jai Pratap Singh, said, "Of the 8591 highway liquor shops affected by the Supreme Court order, 2000 are yet to be relocated while 3000 shop owners have surrendered their liquor licences."

The minister said, "We have incurred a loss of about Rs 5000 crore in 2016-17 fiscal ending March 31. Out of the target of realising Rs 19000 crore, the excise department could generate Rs 14000 crore following the apex court order order."

The Supreme court in its December 15, 2016 order had banned the liquor shops within 500 metres on the either side of the national and state highways.

He said, "We are introducing a cashless system in liquor shops and asking them to install point-of-sale (POS) machines. Though it will difficult in rural areas, we are asking shops to switch over to cashless payments."

He added, "We have decided that no liquor shop will be relocated within 500 metre of religious places or hospitals. In case of objection, even residential colonies will come under the ambit. At the moment it is not in a very formal shape. But we are working on it."

The minister said that Yogi Adityanath government will introduce its new excise policy from April 2018 and the government plans to break the syndicate system in liquor trade.

He said, "We are working on the new excise policy before finalising it."

The new excise policy may introduce a system of bar code on each bottle in a bid to check black marketing and pilferage in liquor sale, mostly in country-made alcohol products.

According to an excise official, the bar code would be connected to computer data to ensure each batch is sold by the rightful dealer. 

In order to ensure "uninterrupted "supply to liquor outlets across the city, the Delhi excise department (DED) has directed all distributors to maintain one week's stock of all approved brands for sale.

The department has warned of strict action against those not complying with the order.

Besides, all liquor distributors have been asked to submit information about their stock on the first working day of every week so that supply of liquor is not affected in the city.

The move comes after complaints were received that supply of some liquor brands is being affected.

An official said, "All L 1 licensees (wholesale suppliers of liquor) have been directed to maintain at least one week's stock of all the brands approved for sale in Delhi. 

Apart from this, they have also been asked to submit weekly stock position on the first working day of every week to the Assistant Commissioner (excise)."

As per Rule 89 of the Excise Rules (2010), all distributors of liquor will be bound to maintain a stock of liquor as may be laid down from time to time by the Excise Commissioner.

The rule also stated that in case, the licensee fails to maintain the required stock, action under relevant sections of the Delhi Excise Act 2009 shall be taken against them.

Liquor shops in Sector 29 of Gurugram have started serving liquor, after getting clearance from the excise commissioner in Chandigarh.

Around 16 bars and restaurants had shut completely or stopped serving alcohol in Sector 19 after the Supreme Court ordered a ban on sale of liquor within 500 metres of state and national highways.

Ten outlets in Ambience Mall along with The Westin, Crowne Plaza and two restaurants also got the state excise department’s nod to serve liquor, sources said.

According to officials at the excise office in Gurugram, the commissioner’s office in Chandigarh cleared 30 outlets. Deputy commissioner Hardeep Singh-led district-level committee, which includes officials of excise department, PWD, NHAI, DTCP, Gurgaon police and Huda, had given its approval to 38 outlets in Sector 29, Ambience Mall, Crowne Plaza, Rajiv Chowk and Sohna Road at a meeting held on April 21.

A senior excise official said, "The clearance has come from the head office in Chandigarh. We will have some more processes to follow now. But yes, since they have got the approval, these outlets can start serving liquor now."

Sources said the excise department is expected to take a final decision on granting approval to outlets in Cyber Hub within a week.

Inderjit Banga, Co-owner of Prankster at Sector 29, said, "The move will definitely revive the night life in Gurugram. There is immense joy and excitement everywhere, especially among our employees who have got jobs back."

Ashwin Chaudhary, who runs multiple outlets in Cyber Hub and Sector 29, said, "I am extremely happy for my employees who have been working with me for six years. Some of them are away at their villages and will have to be called back."

With just three days left for the state excise department to enforce the Supreme Court's judgment banning the sale of alcohol along national highways, liquor distributors and retailers are running confused and scared.

Given the uncertainty surrounding the Supreme Court’s judgment, alcohol distributors have also stopped selling alcohol on credit.

Alcohol distributors used to offer a 21-day credit mechanism to retailers but with the excise department yet to renew the licenses for 2017-18 for outlets operating within 500 meters of the highways, distributors have either stopped supplying fresh stock or are supplying purely on cash purchases.

Uncertainty on whether the judgment applies to bars and restaurants has also dampened sentiment and these outlets, which fall along the highways, have also reduced their stock of alcohol, especially imported, as well as premium Indian-made foreign brands. These outlets are also in discussions to offload slow moving stock.

Goa Chief minister, Manohar Parrikar issued directions stating that the apex court’s judgment did not apply to bars and restaurants.

Many of these stores have been operating with low inventories as distributors tighten the leash on supply and credit ahead of April 1. For retailers, the bigger worry is the reluctance of distributors to supply on credit. The demand for cash on delivery has put a strain on working capital in most stores, making it difficult for them to maintain adequate stocks of even popular brands, a retailer said.

An owner of a prominent liquor store in Panaji said the industry was unnerved by the Supreme Court’s judgment and the state government’s lack of interest.

Haryana with the new excise police effecting an across the board, increase of 20% in prices of all the brands of country liquor, Indian Made Foreign Liquor (IMFL), and foreign liquor in the state.

Excise Policy for the year 2017-18 was unveiled by excise and taxation minister Captain Abhimanyu. The policy is being tagged as "vendor friendly" as it seems to favour the retailers than the buyers.

What's more, those living in Gurugram and Faridabad excise zones will have to pay more for drinking in pubs and bars as the licence fee has been increased from Rs 12 lakh to 15 lakh per annum. This excludes other levies.

Unlike previous years, the policy extends several choices to the vendors. Now, the vendor has an option of selling any kind of brand, be it country liquor or IMFL or both from same premises.

Keeping in view the orders of SC banning liquor vends along all highways, the state government has given the contractor freedom of chose the location of the vend. This come with an additional facility of allowing the licensee to open two sub-vends at the places of his choice in the particular zone allotted to him.

Abhimanyu, who is also the finance minister of Haryana, will present his third budget.

The excise department achieved the revenue target of just Rs 4,071crore against the target of 4,900 crore. Abhimanyu hinted at fixing Rs 5,500 crore as target for the next financial year. The minister said that he expected the licence fee and statutory levies for the licencess will help in achieving the current year target.

There can be a maximum of 3,500 retail outlets of CL and IMFL in the state for the year 2017-18. Since the licensees have been allowed to open two subvends under each vending licence, the number of vends in rural and urban could go as high as 9,000.

Abhimanyu said, "Allotment of liquor vends would be made on the basis of zones in a shift from allotment on the basis of group of vends as in the previous year. The zones will comprise six retail vends."

Thirty-four pubs and bars in Gurgaon's upscale DLF CyberHub, near the Delhi-Gurgaon Expressway, are staring at an uncertain future after the Supreme Court mandated that sale of liquor will not be allowed within 500 metres of national and state highways.

The excise department has also identified another 109 pubs and 43 liquor vends that would lose their licences on April 1 in compliance with the apex court order.

The bars in several five-star hotels and resorts, located along the expressway, also fall within the red zone.

On December 15, the Supreme Court had directed states and union territories to stop sale of liquor within 500 metres of national and the state highways, as well as on service lanes along highways.

The court also directed the administration and the police departments of all states to chalk out a plan for enforcement within a month.

Some pubs and bars in the Sector 29 market will also be affected. A number of such outlets are also located along Sohna Road.

Aruna Singh, Deputy Excise and taxation commissioner, Gurgaon, said, "We will comply with the orders of the Supreme Court. We have conducted a survey and will shortly submit the report to the headquarters."

Pub owners are planning to meet the excise department officials to get more clarity on the matter.

Arvind Kumar, General Manager, The Wine Company, said, "Restaurants are being targeted unjustifiably. A restaurant is the safest place for an individual to drink and at least more than three-and-a-half lakh employees face the risk of losing jobs."

Goumtesh Singh, Owner, Raasta Cafe, said, "Due to a lack of description in the ruling, all food and beverages outlets have come under the scanner. Let’s hope that the Supreme Court will explain this and give us a realistic guideline of the ruling."