Amid the ongoing controversy over the allotment of 96 liquor vends in Chandigarh, the UT Excise and Taxation Department has announced a fresh auction for 48 shops.
The move comes after the department revoked the licences of 47 liquor vends late last night, as the allottees failed to provide bank guarantees worth Rs 40 crore, which is mandatory under the Excise Policy 2025-26. An additional licence was cancelled today, bringing the total number of cancelled allotments to 48.
The liquor vend in Sector 20 may also be included in the re-auction due to an error by the bidder, who quoted an unusually high bid of Rs 55.50 crore against the reserve price of Rs 7.50 crore. If the bidder fails to pay the licence fee, the department will forfeit the Rs 25 lakh earnest money deposit, cancel the licence, and include the vend in the fresh auction.
As per Clause 21 of the Excise Policy, every successful bidder is required to submit a bank guarantee amounting to 15 per cent of the licence fee within seven working days of the allotment.
Also Read: Chandigarh faces 19.5 lakh unpaid traffic challans crisis
Failure to do so results in cancellation of the allotment and forfeiture of the security deposit. Meanwhile, concerns of cartelisation in the initial auction have also been raised.
Darshan Singh Kler, president of the Chandigarh Wine Contractors Association, alleged that 87 out of the 96 liquor vends were awarded to just two or three individuals, who participated through multiple companies or proxies including relatives, associates, and employees.
Also Read: HC halts changes to Chandigarh liquor vends, issues notice
Follow us
