CCI dismisses United Breweries' complaint against excise dept of Delhi

Fair trade regulator CCI dismissed a complaint filed by United Breweries Ltd against the excise department of the Delhi government with regards to conditions imposed on liquor licence.

Vijay Mallya is a majority stakeholder in United Breweries Ltd.

The Competition Commission of India (CCI) disposed of the complaint saying the department, in discharge of its statutory functions falls within the realm of public policy and cannot be considered an "enterprise" for investigation under relevant provisions of the Competition Act.

The firm in its complaint stated that each year under excise policy by the Government of NCT of Delhi, the department grants L-1 licence to eligible manufacturers for wholesale supply of various categories of Indian Made Foreign Liquor (IMFL).

United Breweries alleged that conditions imposed by the excise department on L-1 licensees were "unfair and discriminatory".

According to the complaint, the firm alleged that "terms and conditions are rarely revised with the changing economic landscape and increasing costs and there is insufficient provisioning for inward freight, transportation and handling charges."
Among other allegations, the firm also said there exists "arbitrarily set license fee without ceiling on beer brands compared to other IMFL."
Besides, the Commission also noted that the department is not involved in production, storage, distribution or sale of beer and thus the possibility of examination under relevant provisions of Section 3 of the Act is also "ruled out."