Sources said that such a situation has never arisen before. About 70 lakh liquor bottles — stock that would usually last four to five days — bought under licences given under the now-scrapped liquor policy are still lying in godowns and warehouses. The Excise department is now devising ways to dispose of the stock under the prevailing scheme.
Sources said around 25 lakh liquor bottles of various registered brands of spirits and beer, which are also registered under the current excise regime wherein only the government-run shops are operational, may be sold under the present regime.
“However, the department so far has not formulated a plan for the remaining 45 lakh bottles that are unregistered under the present policy… The government is looking into the option of registering the brands and selling them. If this does not happen, the bottles will have to be destroyed,” an official said.
This stock was bought under the Delhi Excise policy 2021-22, which was scrapped amid allegations of irregularities and expired on August 31. It includes beer and alcohol, like whiskey, rum, vodka, gin etc. When the new policy came into force on September 1, many brands were not registered.
Sources said that such a situation has never arisen before. “This is the first time that a situation like this has arisen… About 70 lakh liquor bottles are left. Some former licencees who have stock that is registered under the existing policy approached the department, requesting to allow them to sell them… We are thinking about disposing of registered brands of beer which only have a usage period of six months and are exploring ways on how to deal with the remaining stock,” said a source.
Vendors bought the stock under the previous policy but could not sell them on time. After the CBI started a probe into the previous policy, its extension was scrapped.
“The L-1 licencees have paid the excise duty for this stock, and if they don’t get permission to sell it and the government decides to destroy it, the former licencees who have already paid excise duty will face loss,” said a source.
Officials said registering the leftover stock of beer will expire without proper refrigeration facility. “The industry is concerned about the stock left at L1s during the two policy changeovers. However, under the excise policy in effect from November 16, 2021, until August 31, duty was embedded in the vend licence fee. The tax treatment of the two was different. A few months after November 2021, companies were allowed to transfer their leftover stock to new L1, but permission to sell was not given. That stock is still at L1 warehouses. Also, the Excise department has asked for full annual licence fees for brands this year despite only seven months being left and hence some companies may not renew their licence,” said Vinod Giri, Director of the Confederation of Indian Alcoholic Beverage Companies, in a statement.
The CIABC has written to the Excise Commissioner and Finance department raising the matter and seeking a solution for the leftover stock.