Delhi Facing Dry Day-Like Situation Even After License Extension

Monday was a "dry" day in Delhi, with all private liquor shops and bars remaining closed. The Delhi government announced a one month extension. However, liquor vends kept the shutters down. No alcohol could be served at bars, clubs, or hotels as excise licenses expired on July 31.

A source said that the Delhi government had decided to extend existing liquor shop licenses until August 31. The Lieutenant Governor has approved the order of the Excise Department to open the liquor shops. The shops were closed because the LG office did not give permission to extend the licences for a month on Monday night.

"We had the license to operate until July 31, but the excise department did not grant us any extensions. Manager of a well-known bar and restaurant chain, Irfan, stated that the liquor service has been closed for the day. He said that although they were told to close for today, once an order arrives, they will be able to reopen tomorrow.

On condition of anonymity, a zonal license holder stated that there has been so much uncertainty surrounding the policy. We don't know what tomorrow will bring. He said that if the order is granted, there might be shortages.

"The temporary closure of bars and shops for a few days is not a major problem and does not affect anyone. If shops are unable or unwilling to reopen in a normal manner, then the supply chain may be disrupted. This can take time to restart. It is unlikely that trade will stockpile for short-term extensions. This disruption is a loss for all stakeholders, whether it be the government, manufacturers, restaurants, or consumers," Vinod Giri (Director General of the Confederation of Indian Alcoholic Beverage Companies, CIABC) informed.

The Delhi government, however, has decided to return to the previous retail liquor sales in the city for six more months. This is in response to Lieutenant Governor VK Saxena’s recommendation to have a CBI investigation into the implementation the new excise policies.The AAP government, however, has granted a one-month extension as it takes time to transition from the current excise to the old system.

According to a source, the AAP government sent the decision of the cabinet to extend existing liquor vend licenses for one month up to August 31 to the Lt Governor. A source claimed that the LG will approve the orders that allow liquor stores to stay open beyond July 31.