Delhi govt extends excise policy for 3 more months

New Delhi: Delhi government has extended its existing excise policy for another three months, as no decision has been made on a new liquor policy. The extension, approved by the competent authority, allows liquor sales under the current system until June 30, 2025. A circular issued by the excise department on March 26 confirmed that L-1, L-1F, and L-2 licensees, which regulate the wholesale sale of Indian liquor, foreign liquor, and beer, can continue operating at existing prices during this period.

The license holders who wish to continue operations from April 1 to June 30 must deposit a three-month fee on a pro-rata basis. The current excise policy, also known as the old excise policy, has been in place since September 2022. It was reintroduced after the previous Aam Aadmi Party (AAP) government scrapped its reformative 2021-22 excise policy amid allegations of irregularities. The portfolio is now handled by Delhi’s Chief Minister Rekha Gupta, under whom the government is yet to finalise a new policy.

The old excise policy was initially meant as a temporary measure to prevent a regulatory vacuum following the cancellation of the 2021-22 excise policy. That policy was introduced on November 17, 2021, and lasted until August 31, 2022. It sought to reform liquor trade in the national capital by withdrawing the government from retail liquor sales and allowing private vendors to run liquor stores across the city under a liberalised regime. However, the policy was scrapped following an inquiry recommendation by then-Lieutenant Governor Vinai Kumar Saxena due to alleged irregularities in its implementation.

Since then, the Delhi government has been extending the old excise policy at regular intervals. The most recent extension was granted in September 2024 and was set to expire on March 31, 2025. A draft proposal for a new excise policy for 2023-24, prepared by the excise department, remains under government review. Under the extended policy, four Delhi government corporations continue to operate retail liquor vends across the city. Until a new policy is approved, the existing structure will remain in place to ensure continued regulation of liquor sales in the Capital.