April 20: It appears Delhi government has been working very hard even during lockdown with the excise department shutting itself in a corner and issuing a Circular 2 days after the Notification by the Ministry of Health Affairs banning sale of liquor and a day before Delhi Chief Minister Arvind Kejriwal reiterating continued the ban, and has come up with the directions for continuation of the License for 2019-20 for 3 more months for now on depositing license fee from April 1 on prorate basis 
       
 
  
   At  a time when there have been no sales allowed in Delhi since March 22 and at  least till May 3 there is a complete lockdown and at a time when the retail,  restaurant business and the distribution is at total standstill and several  businesses are expected to close down, the tax revenue conscious department of  Delhi has issued the Circular dated 17 April, 2020; it says that the Authority  has ‘extended the validity of existing L-1/L-1F/L-2 Licenses for the sale of  liquor brands registered as per approved terms and conditions for 2019-20 at  their existing price up to 30.6.2020’.
   The circular has confounded the distributors who have  had their arms up in the air and in fact are hoping to get a refund of the  excise paid from March 23 till the date the sales would be allowed again and  they even hope for a reduction of the label registration charges to kick-start  the sale of wine and liquor.
   Despite  the loss of excise revenue of Rs. 17,500 crores in India due to ban on sales,  the circular serves to demonstrate an example of bureaucratic procedures in  India. 
   One  can only hope that the government would allow the sale of alcoholic products  soon and that the Ministry of Home Affairs would consider the relaxation in the  rules. The black market and bootlegging is rampant and there have been even  several cases of robbing and looting shops all over India-including Delhi.
   Haryana  Policy
   Meanwhile,  Haryana had punctually announced last month its policy for 2020-21, in the  process dismantling the practical monopoly of the last 3 years by reducing the  license fee from the monopolistic effectively Rs. 64 crores to a minimum of Re.  1 crore only per distributor and hoping to appoint 10-15 distributors,  earmarking areas with targets for sales and different license fees for each of  these defined areas. Three distributors including Lake Forest had already  applied for the distribution license for which the last date of application was  March 31. Due to the lockdown, the licensing procedure has been suspended and  stays so as on date, according to sources.
   Under  the circumstances, release of the Circular by the Delhi government when no  sales are allowed, provides but a comic relief to those not involved directly  in the business and confusion, uncertainty and stress for those who are.  Incidentally, since last year, the license fee of Rs. 7 lakhs (wine and beer),  Rs. 15 lakhs (liquor) and Rs. 22 lakhs for all-inclusive alcoholic -beverages,  is adjustable downwards by the amount paid for such renewals as in the current  circular till the new policy is announced, but the label registration charges  of Rs. 60,000 for each imported wine label is still not adjusted downwards,  keeping the policy skewed against the distributors with L-1 F license,   and eventually passed on to the hapless consumers. 
   To  put thinks in the proper perspective, if the lockdown were to continue till  June 30 (one hopes this would not be the case), one has to pay Registration  charges of labels of Rs. 60,000 each along with the license fee of Rs. 1.75  lakhs for 3 months , with NO sales at all, according to the present Circular.
   Subhash  Arora
   Circular
   
    
 
 
  
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