Delhi govt extends excise policy up to June

The Delhi government has extended its current excise policy for another three months, as no decision has been reached on a new version.

According to a circular issued by the excise department on Wednesday, the validity of existing L-1, L-1F, and L-2 licenses—granted for the wholesale sale of Indian liquor, foreign liquor, and beer, respectively—has been extended until June 30, 2025. The circular confirms that liquor brands registered under the approved terms and conditions for 2024-25 will continue to be sold at existing prices.

Licensees wishing to continue operations during this extension period, from April 1 to June 30, must pay a three-month license fee on a pro-rata basis.

This policy, commonly referred to as the old excise policy, has been in effect since September 2022. It was reintroduced after the AAP government scrapped its previous reform-oriented excise policy (2021-22) amid allegations of irregularities in its formulation and implementation. The old policy has since been renewed periodically, as the government has yet to finalise a replacement. Its most recent extension was in September 2024 for six months, lasting until March 31, 2025.

Officials have stated that a draft of a new excise policy for 2023-24, prepared by the excise department, remains under government review.

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The old policy was initially intended as a temporary measure after the abrupt withdrawal of the 2021-22 excise policy, which was designed to reform Delhi’s liquor trade. Implemented on November 17, 2021, the reformative policy ended on 31 August 2022. It had introduced a liberalised excise regime, allowing private players to operate liquor stores while the Delhi government withdrew from retail liquor sales. However, following allegations of irregularities and a subsequent CBI inquiry recommended by Lt Governor V K Saxena, the policy was discontinued.

Under the extended policy, retail liquor sales in Delhi are currently managed by four government-run corporations.

(With inputs from PTI)