Hoteliers urge Wine Traders Association to allow liquor supply in Mumbai

The Hotel and Restaurant Association of Western India (HRAWI) on Friday alleged that the embargo imposed by the Wine Traders Association (WTA) on liquor distribution across the city is harming the industry.

The HRAWI in a statement said that an embargo of such nature by means of collective anti-competitive action or cartelization against hotels and restaurants is insensitive, illegal and against the spirit of camaraderie that the wine industry shares with the hotel and restaurant industry.

Members of the HRAWI have reported that WTA and its member distributors are insisting on an NOC (no objection certificate) from the WTA for resuming supply of the liquor stock to hotels and restaurants.

"We are shocked that despite knowing that the hotel and restaurant industry is affected the worst due to the lockdown, the WTA has acted in such a deplorable manner," the statement said.

"Hotels and restaurants were simply following orders imposed by the Union and the state governments because of which we were unable to generate any business over the last seven months.

Restaurants opened just on October 5, that too with only 33 per cent capacity and several restrictions. Under these circumstances, imposition of embargo of such nature is not only insensitive but is also illegal," HRAWI president Sherry Bhatia said.

Many hotels and restaurants have also pointed out that the distributors whose bills have been duly paid up to date are still insisting on clearing payments of all the other member distributors of the WTA for uninterrupted delivery of any liquor stocks, he added.

The HRAWI has pointed out that prior to the lockdown, many hotels and restaurants were compelled to stock large quantities of liquor, which either went unsold or perished due to the continued lockdown which lasted for more than six months.

"Many such similar issues of disputes on bills or payments are pending resolution between distributors and hotels and restaurants. WTA instead of being considerate more particularly under the present extraordinary situation, is taking advantage of our beleaguered Industry, HRAWI vice president Pradeep Shetty said.

There are less than twenty suppliers of liquor stock in Maharashtra and Mumbai and just one distributor per brand.

The HRAWI alleged that such a collective action by the distributors through their Association is clear monopolization.

"Under the current circumstances, we request the Wine Traders Association to cease and desist from continuing the embargo on supply of liquor stock to hotels and restaurants. We also request them to desist from insisting on NOC for making deliveries of stocks pursuant to purchase orders from establishments, Bhatia added.

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