HC dismisses pleas to stay Delhi government’s decision banning discount on liquor

To sell a bottle of liquor free of cost is not healthy competition, but anti-competitive: HC

The Delhi High Court on Tuesday rejected pleas by several liquor license holders seeking a stay on the Delhi government’s decision prohibiting any rebate on the sale of liquor in the Capital.

The High Court took into account the submission made by the Delhi government that the grant of “huge discount” on liquor sale by a few vendors had led to market distortions.

“The respondents (Delhi government) in conformity with the above stand has given the statistics/figures to highlight the market distortions, which has lead to increase in the sale of liquor in certain zones as against others and alleged hoarding, inter-state transportation of liquor, etc.,” Justice V. Kameswar Rao said.

“To sell a bottle of liquor free of cost is not healthy competition, but anti-competitive, which is clearly impermissible,” the High Court noted while dismissing the petitioners’ applications to stay the February 28 decision of the Delhi government. The petitioners said the ban on liquor discounts was causing an irreparable loss due to a substantial dip in their sales.

“Further, it is only ten licensees, who have come forward to challenge the impugned order as against other licensees, who have also been granted licence for sale of liquor, and are also bound by the impugned order,” the Judge said.

On February 28, the Delhi excise commissioner passed an order discontinuing any discount or rebate on the MRP of liquor in the Capital.

The Delhi government said there was a smooth implementation of the excise policy from November 17, 2021. But in February, 2022, some of the retail licensees started giving huge discounts on the MRP with offers like ‘buy one get one’, ‘buy one get two’, etc., the government said. These vendors put up hoardings in front of their outlets and messages were circulated on social media platforms promoting discounts and luring customers in with freebies.