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Chandigarh excise dept manages to auction only 20 out of 48 liquor vends

Chandigarh excise dept manages to auction only 20 out of 48 liquor vends

Time of India21-04-2025

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Chandigarh: The UT excise and taxation department managed to sell only 20 out of 48 liquor vends during the auction. The department plans to conduct another round for the remaining vends. They generated Rs 131 crore in revenue, surpassing the reserve price of Rs 109 crore, which was established based on previous highest bids.
All these vends were earlier auctioned and allotted, but later, as the contractor failed to deposit the stipulated amount, these allotments were cancelled, and the administration decided to re-auction the vends. The administration earned nearly Rs 23 crore by forfeiting the earnest money and security deposits of the cancelled liquor vends.
During Tuesday's auction, a Sector 61 liquor vend was purchased for Rs 12.31 crore, exceeding its reserve price of Rs 11.57 crore. A vend in village Khuda Lahora/Khuda Jassu received the second-highest bid at Rs 10 crore, above its Rs 8.2 crore reserve. The third-highest bid went to a Sector 22-B vend at Rs 9.99 crore, significantly higher than its Rs 4.96 crore reserve price.
At the March 21 auction under the
Chandigarh Excise Policy 2025-26
, 96 of 97 liquor vends were sold. The department received 228 electronic tenders/bids for these units, with a reserve price of Rs 439.29 crore. They collected Rs 606.43 crore in licence fees, showing a 36% increase over the reserve price, plus Rs 4.56 crore in participation fees. Village Palsora's vend received the highest bid of Rs 14 crore, exceeding its Rs 10.22 crore reserve price.
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The Chandigarh Wine Contractors Association contested the auction process in the Punjab and Haryana high court, citing concerns about cartelisation. They claimed that 87 of 96 vends were allocated to just two or three individuals operating through various firms, relatives, associates, and employees. While the high court initially stayed the auction, the Supreme Court later lifted the stay, directing the high court to resolve the matter. The next hearing is set for April 24.
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