Gurugram Vendors Found Selling Liquor Below MRP, Probe Launched

News18

29-05-2025

Last Updated:
Violations of MRSP norms may indicate value-added tax (VAT) evasion and raise concerns about the sale of potentially substandard or unauthorised liquor in the market.
The Gurugram excise department has initiated an investigation into liquor vendors allegedly violating pricing regulations. They are accused of selling alcoholic beverages below the minimum retail sale price (MRSP) and overcharging bars and pubs beyond allowed limits.
According to the officials, any violations of MRSP norms may indicate value-added tax (VAT) evasion and raise concerns about the sale of potentially substandard or unauthorised liquor in the market. Social activists and pub owners have also alleged the existence of a parallel, unregulated pricing system.
As per Haryana's excise policy, MRSP is the minimum price at which alcoholic beverages can be sold. Selling below this price is prohibited, as it can disrupt market competition and may indicate tax evasion or irregularities in tax payments.
In many cases, the violation arises when outgoing L-2 license holders—retail vend operators—attempt to offload old stock by offering steep discounts as their tenure ends. With the new excise policy year beginning on June 12, some vendors are reportedly slashing prices to avoid incurring losses when handing over inventory to new license holders.
L-2 licensees are barred from offering discounts below the MRSP, under the current excise policy, as well as the new policy effective from June 12, 2025 to March 31, 2027. The policy also imposes a cap on how much more L-2 vendors can charge bars and pubs—no more than 10% above the MRSP.
However, spot checks by Hindustan Times indicate blatant violations. In one case, a 750 ml bottle of VAT 69 whisky, with an MRSP of Rs 1,550, was reportedly being sold for Rs 1,000, and in bulk purchases, for as little as Rs 700. Meanwhile, bars claimed they were charged Rs 220 for a 330ml Corona beer bottle with an MRSP of Rs 95, more than double the permitted price.
Pub and bar owners also voiced frustration over the unchecked practices. 'We're being charged nearly double for a single bottle of beer. The vendors tell us to take it or leave it. There's no enforcement," said a pub manager from Sector 29, who asked to remain anonymous.
Another bar owner from Cyber Hub echoed the sentiment, alleging that complaints to the excise department have gone unanswered. 'It feels like the system is compromised," he said.
Amit Bhatia, Deputy Excise and Taxation Commissioner (East), acknowledged the complaints and assured action. 'We will check this activity and issue notices to the concerned L-2 licensees. Breach challans will be served, and further violations will attract stricter penalties," he said.
Enforcement of liquor rules remains a concern, with many vendors failing to provide receipts with their name and address, violating excise policy. Additionally, the limit of 12 bottles per customer is often ignored, sparking complaints from consumers.
Amit Khurana, a private sector employee, said the pricing disparities are obvious to regular buyers. 'It's a free-for-all. You find the same bottle at wildly different prices. We've complained, but nothing changes," he said.
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