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Delhi govt orders liquor vendors to discontinue discounts on MRP

The order comes amid offerings of huge discounts, as high as 30-40 percent, by several liquor vendors in a bid to clear their stocks by March-end. This has led to reports of massive crowding outside some of the liquor outlets.

February 28, 2022 / 08:52 PM IST
Representative Image (Reuters/Adnan Abidi)

Representative Image (Reuters/Adnan Abidi)

The Delhi government on February 28 ordered all liquor vendors to discontinue discounts, rebates and concessions on the maximum retail price (MRP), failing to which action would be initiated against them.

"All licensees shall neither give concession rebate or discount on the MRP of liquor," stated the order issued by the Department of Excise.

The order comes amid offerings of huge discounts, as high as 30-40 percent, by several liquor vendors in a bid to clear their stocks by March-end. This has led to reports of massive crowding outside some of the liquor outlets.

The government's excise policy, which came into effect last year, allowed the vendors to offer discounts to attract customers. The rationale of the policy was to promote healthy competition.

However, the kind of discounts and rebates being offered is "leading to unhealthy market practices deployed purely for short-term business gains", the order said.

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The government also noted that law and order problems have been reported due to the gathering of large crowds outside retail vends due to the high discounts.

"It has been brought to the notice of the excise department that as a result of the discounts being offered by the licensees through their retail vends, there are instances reported of large crowds gathering outside the liquor stores leading to law and order problem," the order noted.

“It is also to be kept in mind that the COVID situation is not yet over and the danger of COVID-19 still persists and therefore the huge crowds are likely to aggravate the rise in the COVID cases in Delhi," it further said.



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Moneycontrol News
first published: Feb 28, 2022 08:52 pm
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