Delhi drinkers may soon pay Gurugram-like prices for premium liquor

Delhi government is weighing bringing premium alcohol prices at par with Gurugram and Faridabad, as fixed retail margins in the capital push buyers to neighbouring cities

The Delhi government is reportedly considering bringing liquor prices, particularly in the premium category, in line with those in National Capital Region (NCR) cities such as Faridabad and Gurugram under the upcoming liquor policy, in a bid to recoup revenue lost to neighbouring states.

 

According to a report by The Indian Express, the issue was discussed on October 3 at a meeting convened by the excise committee tasked with drafting the new policy. The ministerial committee is reportedly headed by Public Works Department Minister Parvesh Sahib Singh, with other ministers as members.

 

Draft policy expected within a month

 

 

The draft of the new liquor policy would be ready within a month. The report, citing an official, said several rounds of internal meetings had already been held, with the committee meeting about four times so far to discuss the policy. The meeting reportedly focused on issues such as the fixed retail margin, excise duty, the legal drinking age for beer in Delhi, and the availability of premium brands.

 

What drives customers to NCR markets?

 

A senior official told the newspaper that although Indian liquor brands were similarly priced, many Delhi residents preferred buying premium liquor from neighbouring cities like Gurugram because Delhi imposed a fixed per-bottle retail margin, unlike Gurugram, which had no such cap.

 

The retail margin in Delhi is capped at Rs 50 per bottle for Indian Made Foreign Liquor and Rs 100 for foreign liquor.

 

Another official said the fixed retail margin prevented government corporations from stocking premium imported liquor priced above Rs 1,000 in Delhi, prompting customers to buy such brands from neighbouring cities like Gurugram and Faridabad, where prices were often much lower. For example, Black Label could cost about Rs 2,400 in Gurugram compared to Rs 3,500 in Delhi, the official added.

 

What happened with the previous liquor policy in Delhi?

 

The previous Aam Aadmi Party government led by Arvind Kejriwal introduced a liquor policy in November 2021, under which it stopped government outlets from selling liquor and allowed private firms to apply for licences to run stores. The government said the policy aimed to curb black marketing, boost Delhi’s revenue, and benefit customers.

 

However, Chief Secretary Naresh Kumar alleged in a July 2022 report that there were multiple violations of rules under the new policy. He said the Kejriwal government’s liquor policy gave "undue benefits" to sellers and pointed out a Rs 144-crore rebate in liquor licence fees during the Covid-19 pandemic.

 

Following the report, Delhi Lieutenant Governor VK Saxena directed the Central Bureau of Investigation (CBI) to probe the matter. The AAP dismissed the allegations, but the Delhi government later withdrew the policy, leading to the closure of more than 400 newly opened stores.

 

ED, CBI investigate ‘South Group’

 

The CBI and the Enforcement Directorate (ED) alleged the involvement of a 'South Group', which included K Kavitha, daughter of former Telangana chief minister K Chandrashekar Rao; YSR Congress Party MP M Srinivasulu Reddy; and Sarath Reddy of Aurobindo Pharma.

 

The ED alleged that the 'South Group' had an arrangement with the AAP under which it funded the party’s Goa election campaign, expecting to recover the money through liquor businesses it controlled in Delhi.

 

Kejriwal, Sisodia's arrest

 

Kejriwal, his former deputy Manish Sisodia, and party's Rajya Sabha MP Sanjay Singh faced allegations of corruption and money laundering linked to the policy’s implementation. The three leaders were arrested by the CBI and the ED but are currently out on bail.