Delhi govt extends for 1 year existing excise policy for hotels, clubs

With a new excise policy yet to be finalised, the Delhi government has issued orders asking hotels, clubs and restaurants (HCRs) to renew their licence under the existing policy for the next financial year 2026-27, officials said.

In June last year, the Delhi government extended the duty-based excise policy, which has been in effect from the licensing year 2022-23, for the 2025-26 fiscal.

“The Competent Authority has granted approval for renewal and grant of new Hotel, Club and Restaurant (HCR) and Medicinal and Toilet Preparations (M&TP) licences for licensing year 2026-2027 on same terms and conditions as that of excise year 2025-26,” an excise department’s order said.

Necessary circulars may be issued in this regard by the concerned branches dealing with all the above licences and permits under the Delhi Excise Rules, 2010, the order added.

The department has also increased licence fee by 10 per cent for L-17/L-17F, L-18/L-18F, L-19/L-19F and L 20/L-20F, under the HCR category.

“The department reserves the right to review the licence fee and in case the same is increased, the licensee shall be liable to pay the increased amount within the stipulated time period failing which the department shall have the right to stop the transport permit of the unit or take any other suitable action,” the order said.

The existing policy has been continuing since 2023-24, when a reformative policy (2021-22) allowing private players in retail liquor sale was scrapped by the then AAP government in July 2022 amid allegations of irregularities.

According to officials, the excise department also plans to issue similar orders for L-6 and L-7 licences for retail liquor shops.

Chief Minister Rekha Gupta last year instructed the officials to ready a draft proposal of the new excise policy. The government aims to come up with a new policy that ensures the supply of quality liquor with transparency, the officials said.

Under the existing policy, four Delhi government corporations operate retail liquor vends across the city.