Amidst the continuous conflict between the Minister and Chief Secretary, Punjab Chief Minister Capt Amarinder Singh on Wednesday approved the state’s amended Excise Policy, leaving it on the contractors to decide on the home delivery of liquor.
At the same time, the Chief Minister ruled out any extension for the liquor vend contracts beyond March 31 deadline. He also announced that the State Government would, in line with the Finance Department’s recommendation, provide adjustments to the licensees for losses incurred for the lockdown period, from March 23 to May 6, 2020.
The approval comes a couple of days after the Cabinet unanimously authorized the Chief Minister to decide upon the changes incorporated in the excise policy in the wake of more than a month long curfew due to Covid-19 outbreak.
It has been learnt that the policy has been approved by the Chief Minister on late Tuesday evening, before the Chief Secretary Karan Avtar Singh was divested of the additional charge of Excise and Taxation Department’s Financial Commissioner.
Spokesperson informed that the Chief Minister has accepted the Excise Department’s recommendation, aligned to the Finance Department’s advice, to maintain the period of contract of liquor vends till March 31, 2021.
Capt Amarinder has also approved the Finance Department’s recommendation to provide proportionate adjustment of minimum guaranteed quota (MGQ) for the losses incurred in the nine days of lockdown in March.
Further, in line with the Finance Department’s recommendation, the revenues, both license fee and minimum guaranteed revenue (MGR), for the period of loss from April 1 to May 6, 2020, may also be adjusted or re-determined accordingly by the Excise Department.
Notably, the licensees of 2019-20 could not complete the year as on March 31, 2020, as their vends were closed for nine days due to imposition of curfew and lockdown from March 23, 2020 onwards, in Punjab.
Further the liquor vends for the year 2020-21, which were due to open on April 1, 2020, in pursuance of the State Excise Policy 2020-21, could not be opened.
Noting that as a result of the lockdown, the Excise Department could not complete allotment of liquor vends for the year 2020-21, the Chief Minister directed the Department to take further action, including allotment of remaining vends, in accordance with the State Excise Policy 2020-21.
Of a total of 756 groups, 500 were renewed as per excise policy of 2019-20 and the remaining 256 groups were restructured into 186 groups, of which 89 groups were allotted as per the policy of 2020-21, while the remaining 97 groups are yet to be allotted.
It may be recalled that State’s Excise Policy for the year 2020-21 was approved by the Council of Ministers (CoM) on January 31, 2020. Thereafter, the Department had taken substantial action to implement the policy.
However, implementation was stopped due to the pandemic Covid-19 and resultant curfew and lockdown, with effect from March 23, 2020, imposed first by the State Government on March 23 and thereafter by the Union Ministry of Home Affairs on March 24, 2020 under the relevant provisions of Code of Criminal Procedure (CrPC) and Disaster Management Act, 2005.
Pointing out that, post the lockdown, the State Government had time and again requested the Government of India to allow the Excise and Taxation Department to open liquor vends as it involved loss of State Excise revenue, it is only from May 4, 2020, that Union Ministry of Home Affairs (MHA) allowed opening of liquor vends as per the guidelines issued vide letter of May 1, 2020.
Subsequent to these guidelines of the MHA, the Department examined their implementation in keeping with the State Excise Policy 2020-21. The Department also prepared a memorandum for the consideration of Cabinet, which was sent to the Finance Department for their advice and the same was received on May 11, 2020.
The matter was thereafter considered in the Cabinet on May 11, 2020, wherein the Chief Minister was authorized to approve suitable changes in the State Excise Policy as warranted due to the pandemic Covid-19 and resultant curfew and lockdown.
CONTRACTORS TO DECIDE ON HOME DELIVERY
On the issue of home delivery of liquor, the Chief Minister has decided that the provisions of the existing Excise Policy would continue to be applicable.
However, the Chief Minister has also cited the Supreme Court’s observations in this regard saying that the Apex Court has left the option with the licensees. “The Supreme Court, it may be recalled, had suggested home delivery or indirect sale of liquor, in its order in a public interest litigation of May 8, 2020, to facilitate social distancing during the period of lockdown,” he pointed.
It may be mentioned that many liquor contractors in Punjab had opposed the move citing various reasons, including shortage of manpower. In fact, in Mohali and Fatehgarh Sahib, where all the liquor vends are open, the contractors have not opted for door to door delivery of liquor.
The Government’s decision to provide liquor at people’s doorsteps drew opposition from several quarters, including the party leaders, MLAs, Ministers, and also wives of some leaders. Punjab Congress chief Sunil Jakhar, Cabinet Minister Bharat Bhushan Ashu and his wife, MLA Amarinder Singh Raja Warring and his wife, among others had sought review of the decision fearing that it might lead to increase in domestic violence cases.
Though there is no provision of home delivery of liquor in the Punjab Excise Act and the Excise Rules, the decision was taken to ensure social distancing in the wake of the pandemic.
CONTRACTORS READY TO OPEN VENDS
As the Chief Minister Capt Amarinder Singh on Wednesday gave his approval to the changes in the excise policy, the logjam between the Punjab Government and liquor contractors hase inally come to an end.
Even more than two weeks after the Centre’s approval to open liquor vends, which the state government has all along been demanding to generate revenue, a majority of liquor contractors had chose to keep their shutter down.
Now as the Punjab Government, it seems, has given in to the demands of the liquor contractors, the contractors are now willing to pull up the shutters and even carry out home delivery in areas that suit them.
Out of the nearly 5800 liquor vends across the state, the vends in Mohali and parts of Ropar were opened on May 7.
But, the contractors, who either opted for a renewal of licence or had taken fresh contracts in other districts, chose to stay away.
Notably, the liquor-vend owners have been seeking waiver in license fee and demanding collection of fee on the basis of actual liquor sales as against the fixed quota system arguing that they were badly hit by the lockdown.