The Election Commission of India (ECI) on Tuesday allowed the Punjab excise and taxation department a hold auction of liquor vends scheduled for Wednesday.

On Monday, the EC raised questions over the auction and asked the state government to opt for an interim arrangement till the Lok Sabha polls get over in the state. The model code of conduct for the May 19 polls in Punjab came into force on March 10.

After a cabinet nod to the state excise policy for 2019-2020 on March 2, bids were invited from contractors on March 8, two days before the Lok Sabha polls were announced. The new excise policy will be effective from April 1.

Liquor contracts pegged at Rs 6,200 crore for the forthcoming fiscal hit the roadblock on Monday after the EC asked “why can’t state have an interim arrangement for the sale of liquor?” Replying to the query, the state excise and taxation department clarified that liquor auctions were a major source of revenue for the state and if delayed, will cause loss to the state exchequer.

“We are seeking an increase of Rs 800 crore in the next financial year from the sale of liquor. If we resort to selling liquor by an interim arrangement or as per existing norms, we will lose substantial amount,” said additional chief secretary, excise and taxation, MP Singh. The reply was sent to chief electoral officer, Punjab, S Karuna Raju.

The EC will also look into the quota of Indian-made foreign liquor (IMFL), increased for the next fiscal to 2.62 crore proof litres from 2.48 crore proof litres. In case of Punjab-made liquor (PML), the quota has been increased from 5.78 crore proof litres to 6.36 crore litres for the next fiscal.

A majority of liquor trade in the state is controlled by politicians who would be campaigning and contesting the forthcoming polls. It is said to be the reason for EC’s intervention.

The EC has also given a go ahead to Himachal Pradesh and Uttarakhand for auction of liquor ends.

As per the guidelines of the model code of conduct for polls, any government decision or action impacting the polls will either have to be postponed beyond the poll date or need prior clearance from the EC.

First Published: Mar 20, 2019 13:45 IST