{"id":37944,"date":"2021-11-17T11:00:44","date_gmt":"2021-11-17T05:30:44","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=37944"},"modified":"2021-11-17T12:23:45","modified_gmt":"2021-11-17T06:53:45","slug":"delhi-government-confirms-no-coercive-action-against-liquor-retailers-over-license-fee","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/delhi-government-confirms-no-coercive-action-against-liquor-retailers-over-license-fee\/","title":{"rendered":"Delhi Government Confirms No Coercive Action Against Liquor Retailers Over License Fee"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The government of Delhi on Thursday assured the Delhi HC that it would not take any Coercive Action against liquor Retailers for non-payment of the license fee under the Delhi Excise Policy 2021-22.<\/p>\n\n\n\n<p>Senior Advocates Rahul Mehra\n&amp; AM Singhvi, appearing for the Delhi government, furnished before the HC\nthat it will not trigger any coercive action against liquor retailers. After\nreceiving assurance from the Delhi government, Justice Rekha Palli adjourned\nthe matter for 15 November for further hearing.<\/p>\n\n\n\n<p>The assurance was shared verbally\nwhen the HC was hearing pleas by over various petitions challenging the\ngovernment&#8217;s decision to impose licence fees w.e.f 1 November 2021.<\/p>\n\n\n\n<p>The plea was furnished by 16 petitioners, who are winning bidders of L-7Z* (refers to zonal license for retail sell of Indian-made as well as overseas liquor) &amp; L-7V* (retail sell of Indian-made <a href=\"https:\/\/corpbiz.io\/liquor-license\"><strong>liquor<\/strong><\/a> &amp; overseas liquor in a zone). The petitioners have pled to declare the state government&#8217;s decision to impose liquor fees as illicit.<\/p>\n\n\n\n<p>The pleas also sought to\nprevent the state government from demanding licence fees or security deposits\n&amp; also ordering the concerned authorities not to impose or seek license\nfees from the successful bidders until the state government addressed its\nobligations under the tender terms &amp; the Delhi Excise policy 2021-2022.<\/p>\n\n\n\n<p>Standing counsel of the State\ngovernment of Delhi Santosh Kumar Tripathi has also defended the new excise\npolicy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Further clarifications made by Delhi Government before\nDelhi HC<\/h2>\n\n\n\n<p>Apart from assuring no\nCoercive Action against Liquor Retailers, the AAP government make the following\nclarifications before Delhi high court.&nbsp;<\/p>\n\n\n\n<p>The state government has also\nstated that around 20 mainstream brands rule 80% of the market share in the\nIndian-made Foreign Liquor (aka IMFL) &amp; 30 brands, including ten prominent\nbrands, have already secured MRP registration in all regards between 29.10.2021\n&#8211; 10.11.2021. These brands collectively dominate around 28 % of the total\nmarket share.<\/p>\n\n\n\n<p>The Delhi government has also\nconfirmed to the court that 10 L1 licenses have applied for registration of\naround 78 brands as of 11 November &amp; no legit application of brands is\npending as of date.<\/p>\n\n\n\n<p>Moreover, the state government\nhas also confirmed the 92 brands of overseas liquor have been examined &amp;\nawaiting web-based application by the wholesaler &amp; once legitly applied;\nthe process will be completed in not more than two days.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Excise&#8217;s conditions regarding L-7Z and L-7V license fee<\/h2>\n\n\n\n<ul><li>Each\nzone can secure the license in the form viz; L-7Z via e-tendering process and must\npay a license fee as recommended by the e-tender.<\/li><li>This\nis further exposed to the condition of earnest money deposit (EMD) as well as\nsecurity deposit incited in the e-tender documents.<\/li><li>The\nlicense fees for the first fiscal year shall only be imposed on a pro-rata\nbasis from the scheduled date of business commencement to the completion of FY\n2021-22. If there are nine operative months left in the FY after the scheduled\ndate of business commencement, the licence fees shall be payable only for that\namount of time, i.e. nine months estimated on a pro-rata basis.<\/li><li>The\nlicense holders must pay the license fee as per the provisions of Rule 48.\nAccording to the said rule, a licensee shall, by the 7th of the month in which\nthey commence the business under the license &amp; thereafter by the 7th of\nevery following month, pay in advance 1\/12th of the yearly license fee till the\ncomplete fee is paid.<\/li><li>The\n25 per cent security submitted by the license holder shall be adjusted\naccordingly at the end of the FY. However, the licensee has the right to pay\nthe whole amount due if they so wish.<\/li><li>If\na licensee fails to pay the monthly advance license fee, either wholly or\npartially, then he\/she shall be obligated to pay, on the same due interest @ 12\nper cent from the date next following the day on which aforesaid payment turns\nout due. Moreover, if the payment default continues to exist beyond the 15th\nday of the month, then an extra penalty @ 0.1%\/day on the sum due till the date\nof payment shall be imposed.<\/li><li>Apart\nfrom that, if the license holder fails to address all the dues (including\npenalty &amp; interest) by the month&#8217;s final day, then the security deposit\nshall end up nil, and the license shall be re-tendered &amp; cancelled. The\nlicense shall be blacklisted &amp; restrained from taking part in any other\ntendering process for the time span of two years.<\/li><li>The\nL-7Z license holder must pay the monthly fee on the pro-rata basis for the zone\nas a whole, even if he opted to set up less than the required no. of vends in\nthe form of L-7V in his\/her zone.<\/li><li>The\nlicense fee might be increased on a yearly basis to be determined by the GOI\nevery year.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>The <strong><em>government&#8217;s<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> decision to facilitate relaxation to liquor retailers for paying license is undoubtedly an appreciable one. This will allow the retailers to seamlessly initiate their business proceeding without worrying about the cumbersome license fee.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-obtaining-liquor-license-in-india\/\">Procedure for Obtaining Liquor License in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government of Delhi on Thursday assured the Delhi HC that it would not take any Coercive Action against liquor Retailers for non-payment of the license fee under the Delhi Excise Policy 2021-22. Senior Advocates Rahul Mehra &amp; AM Singhvi, appearing for the Delhi government, furnished before the HC that it will not trigger any [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":37968,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[649],"tags":[2026],"acf":{"service_id":"395"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3447,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37944"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=37944"}],"version-history":[{"count":36,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37944\/revisions"}],"predecessor-version":[{"id":67797,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37944\/revisions\/67797"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/37968"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=37944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=37944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=37944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}