Days after the national Capital witnessed long queues at liquor shops following the huge rebate and concession on liquor rates, the Delhi Government on Monday decided to discontinue the discount on the maximum retail price (MRP) on liquors. A senior Government official said the step was also taken after some licensees, using unhealthy market practice, placed banners and hoardings of the discount to gather more crowds at their shops. The Government also released an order stating that there were instances reported of large crowds gathering outside the liquor stores leading to law and order problems and causing inconvenience to the local population of the areas.
According to an order released by the Excise Commissioner, Arava Gopi Krishna, on Monday, the Covid-19 situation is not yet over and danger of coronavirus still persists and therefore the huge crowds is likely to aggravate the rise in the Covid cases in the city.
"It has been reported that such discounting is also leading to unhealthy market practices deployed purely for short term business gains by some of the licensees and is leading to the distortions of the market," stated the order.
"The intent of the Government in regard to discounting was to promote consumer choice and healthy competition and determination of price by market forces. The discount of this nature was not the objective of the Government while permitting the discounts in the new Excise Regime," the order further stated.
"The licensee are seen indulging in various promotional activities through social media and banners or hoardings being placed outside the stores which is a non-permissible activity under the Delhi Excise Act, 2009 and Delhi Excise Rules, 2010," said the Excise Commissioner.