Chandigarh, April 9 — The Chandigarh Excise and Taxation Department sealed 42 liquor vends for failing to furnish bank guarantees worth Rs 33 crore, just eight days after the rollout of the new Excise Policy for 2025–26.
Officials said the action followed non-compliance with Clause 21 of the policy, which mandates that each successful bidder submit a bank guarantee equal to 15% of the licence fee within seven working days of allotment. Failure results in cancellation and forfeiture of the security deposit.
On March 21, the department auctioned 96 vends, generating Rs 606 crore in licence fees—far exceeding the reserve price of Rs 439 crore. However, nearly half of the allottees missed the compliance deadline.
Darshan Singh Kler, president of the Chandigarh Wine Contractors Association, raised concerns about alleged irregularities in the department’s handling of the process. “The department must not accept bank guarantees after the deadline, as it violates policy norms and creates an uneven playing field,” he said. He also urged the release of a detailed list showing the date and time of each bidder’s compliance for transparency.
The Punjab and Haryana High Court is currently hearing multiple petitions challenging the allotment process. Petitioners have alleged cartelisation, claiming that one family and its affiliates secured 87 of the 96 vends. The High Court had initially ordered a status quo on March 26, but the Supreme Court later overturned the decision, allowing the outlets to open on April 3. The next hearing is set for April 24.
The administration had faced a revenue shortfall in 2024–25, collecting only Rs 800 crore against a target of Rs 1,000 crore, partly due to competition from Punjab’s aggressive excise policy. For the current year, the target has been reduced to Rs 800 crore. A similar gap was reported in 2023–24, when collections stood at Rs 600 crore, falling short of the Rs 830-crore target. Twelve vends had remained unsold during last month’s auction.
