Gurugram fuels Haryana’s highest-ever excise revenue, contributes 27% to state total

Gurugram liquor sale

Gurugram has cemented its status as Haryana’s excise revenue powerhouse, topping the state’s earnings chart with a haul of Rs 3,875 crore in the current fiscal, according to official data shared by the excise and taxation department. This figure represents nearly 27% of Haryana’s total excise collections, marking a standout performance in a year when the department logged its highest-ever revenue of Rs 14,342 crore.

The district easily outpaced its peers, with Faridabad recording Rs 1,696 crore, Sonipat Rs 1,066 crore, Rewari Rs 654 crore and Hisar Rs 615 crore, a clear sign of Gurugram’s dominant grip on state excise flows. Much of this growth stems from increased liquor retail auctions fuelled by the state’s revised excise policy, HT reported.

The revenue surge up 13.25% from the previous year has helped Haryana overshoot its overall collection target. The latest receipts total Rs 63,371 crore, or 102.3% of the Rs 61,950 crore goal for the fiscal, with Rs 39,153 crore credited to State GST and Rs 12,701 crore from excise alone. For 2024–25, the state has set its eyes on an even larger revenue target of Rs 116,639 crore, reflecting a planned 10% bump from the prior period.

Officials cited by HT highlighted that the windfall was underpinned by the auctioning of all 1,194 excise zones, resulting in the issuance of 2,388 retail liquor shop licences throughout Haryana. The process was hailed as both quick and transparent under revamped protocols.

Excise and taxation commissioner Vinay Pratap Singh credited strong enforcement and the state’s strict, zero-tolerance approach on directives from chief minister Nayab Singh Saini. “We allotted two liquor vends per zone and the auction was concluded ahead of schedule and more transparently than before,” Singh stated, as per HT.

The revenue increase was not just a Gurugram phenomenon, with rural districts reporting impressive year-on-year percentage gains. Bhiwani saw a rise of 23.5%, Fatehabad 21%, Hisar and Kurukshetra both 21% and 20.5% respectively, while Panipat reported an 18% upturn - underscoring broad-based improvement across urban and rural areas.

Yet, these achievements have stirred controversy due to alleged procedural irregularities in lucrative districts like Gurugram. Supreme Court advocate and Adhikaar president Rajeev Yadav was cited by HT as saying that multiple premium excise zones were awarded at prices significantly below their initial reserve prices after a series of rebids.

Citing the Sector 31 and 40 zones in Gurugram, Yadav said: “Liquor zones were allotted well below reserve prices by conducting multiple rebids, with the reserve slashed by 3% each time - violating para 2.16 of the excise policy.” He pointed out that the reserve in these zones dropped from Rs 78.81 crore to Rs 50.83 crore - a steep reduction of 35.5%. A similar discrepancy was flagged in the upscale Galleria zone, allotted for Rs 19.63 crore against a reserve of Rs 28.25 crore, roughly 30.5% lower.

Yadav further alleged that repeated “zero bids” in premium spots, used to justify cuts, suggested the possibility of coordination. “Zero bids in premium locations don’t happen without coordination. The silence of CID and vigilance agencies is alarming.” He also raised questions over how results in the Galleria zone were announced even before the scheduled bid opening time on 23 July.

Additional concerns revolved around the final collection for Gurugram West and East falling short of their combine reserve price of Rs 4,007 crore, with the tally resting at Rs 3,875 crore. “This undermines the very purpose of an auction, where bids should exceed the reserve,” Yadav noted.

On the defensive, Amit Bhatia, deputy excise and taxation officer (East), was quoted by HT as saying that statutory processes were followed. “If there are no bidders, we are allowed to lower the reserve price as per policy. Even at reduced rates, if bids don’t come in, we go lower until the zone is picked up,” he explained.

A local liquor vendor in Gurugram, as cited by HT, on condition of anonymity, described the impact of reduced reserve prices as a double-edged sword. While it improved access to certain zones, operational costs in areas like rent, security and staffing remained high, putting pressure on profit margins. “We’re not making a killing,” the vendor said. Addressing the allegations of collusion, they added: “The policy allows rebidding. If there were irregularities, they should be probed. But don’t paint all contractors with the same brush.”