As Delhi is staring at a major liquor shortage in the coming days with private wine and beer stores going to shut shop from August 1, the Arvind Kejriwal Government is considering one month extension to its new excise policy.

Hours after Delhi Deputy Chief Minister Manish Sisodia on Saturday announced that only Government run retail store to sale liquor from Monday, sources in the Government said it was almost impossible to complete the administrative formalities before August 1 that is the reason to continue with the existing policy as the Cabinet approval is needed for the same. “However, pre-empting a chaos due to shutting of 468 private liquor shops and time needed for opening government vends, a proposal is likely to be soon presented before Delhi Cabinet for extension to the 2021-22 policy,” sources added. “It will take at least 48  hours to complete formalities and bring a notification,” sources said.

Sisodia’s announcement forced the the private liquor stores across the city on Saturday to offer heavy discounts and schemes like one plus one free and one plus two free to sell their remaining stock.

With new policy gone, the excise licences issued to hotels, clubs and restaurants having bars, and wholesale operations will also become redundant apart from private run liquor stores in the city. President of National Restaurants Association of India (NRAI) Kabir Suri said there is "lack of clarity" over the emerging situation and things will be clearer only with further instructions from the Delhi Government.

Earlier, addressing a Press conference, Sisodia announced that now that the excise policy of Delhi Government is expiring on July 31, officials are not ready to take this policy forward.

“Then there will be no excise policy in Delhi. From Monday, only government vends will be selling liquor in Delhi . We have decided to end the new policy and have given directions for Government shops to open… I have ordered the Chief Secretary to ensure that there should be no corruption in Government shops and no illegal alcohol sold in Delhi… I have given directions that there should be no chaos during the transition period,” Sisodia said.

However, there was no clarity on whether dry days will increase to 21 or remain the same that is three only in a year. Besides, there was no clarity on the future of private liquor shop owners.

Expressing apprehensions, Sisodia said there could be shortage of liquor in the city as he did not give a date on when Government vends will reopen. “From August 1, many private players will close their shops. Their aim is to create an alcohol shortage in Delhi.

“Their aim is to keep reducing the quantum of legal liquor being sold in Delhi… They want to encourage the sale of illegal, non-duty paid, and spurious liquor…,” he added.

In 2021, 849 liquor store licences were issued by the Delhi Government, but many liquor shops downed shutters due to financial losses. From 849 shops, they came down to 649 stores in May 2022.

 Shops were shut as many license holders were finding it difficult to make a profit after offering discounts due to competition and after paying high license fees.

Earlier, on Friday, in a letter marked “topmost priority” to the State’s Excise Commissioner Krishna Mohan Uppu, Delhi Finance Secretary Ashish Chandra Verma on Friday said, “Reference is invited to the directions of Hon’ble Dy CM dated 28.07.2022 vide which it has, inter alia, been directed to revert to old regime of excise policy for a period of 6 months till a fresh Excise Policy is in place.” The letter further said,

“Considering that the timelines are very short, you, while taking other necessary actions in the matter, may coordinate immediately with the heads of the DSIIDC, DTTDC, DCCWS, DSCSC (all PSUs) to get the following information prepared latest by end of today (i.e., 29.09.2022) in the following format separately for all such four organizations.” The information sought from the excise commissioner includes the name of old vend and its location, staff deployed in the previous regime, whether the premises where the vend was located were rented or owned by the public sector undertaking, and whether the premises were still vacant or occupied.