Online auction of liquor shops from March 23

Registration to begin this week for Cuttack, Balasore in first phase

The excise department of the Odisha government has begun the process to auction liquor shops through online bidding to bring in transparency and garner more revenue, which is first-of-its-kind in the country.

In the first phase, registrations will be invited for liquor shops of Cuttack and Balasore districts, for which auction will take place on MSTC India website on March 23. Registration for the first phase will start on March 11 and end on March 20. Participants have to pay Rs 11,236 with tax, a non-refundable amount to get themselves registered.

For foreign liquor stores, application fee has been fixed at Rs 30,000 while for country-made liquor shops, the fee is Rs 60,000, according to excise department notification. "Odisha will be the first state to start this process. We are doing it on pilot basis for Cuttack and Balasore districts. Later it will be implemented for the rest 28 district of the state," said Damodar Rout, state excise minister.

After Cuttack and Balasore, registration for remaining districts will be accepted between March 24 and April 2, while auction will take place between April 4 and April 8.

Conceptualised in 2012 to bring in transparency in the system, the e-auction process is being undertaken this year after a long legal battle.

On February 28, 2013, the state government had issued notification announcing that liquor shop licences will be given through e-auction. Liquor shop owners had approached the High Court opposing the decision.

In July 2013, the High Court quashed the state government's decision, compelling it to move the Supreme Court. The Supreme Court, in its March 7, 2014 order, allowed the Odisha government to go for e-auctioning of liquor shops subject to fulfilment of certain conditions such as consent of local people and barring people with criminal cases to take part in the auction along with other criteria.

In December last year, the state government decided to go ahead with the auction process and said MSTC would be conducting the process on behalf of the excise department.

The wine merchants association of the state are still objecting the move, citing legal hurdles.

"The High Court will hear our plea On March 20. I do not know what prompted the government to conduct the auction on March 23, as if they know the court order will be in their favour," said an official of Odisha Wine Merchants Association.