Plea filed before Delhi High Court against government's decision to prohibit discount on alcohol

A petition has been filed before the Delhi High Court challenging the Delhi government’s decision prohibiting any discount, rebate or concessions by retailers on sale of liquor [Bhagwati Transformer Corp. and Ors v Government of NCT of Delhi]..The petition filed by a group of private liquor license holders argued that the Delhi government’s decision goes against its own liquor policy which expressly permits grant of discounts by the retailers and the decision has been taken without giving any opportunity of hearing to them.“Discounts were permitted and the licensees were indeed giving and adopting discounts. This was based on such arrangements as licensees could enter into with L 1 licensees, and this was free market and fair competition principles in operation,” read the petition..The Delhi excise commissioner had passed an order on February 28 discontinuing any discount or rebate on the Maximum Retail Price (MRP) of liquor in the national capital. The order had cited reports of large crowds at liquor stores as well as “unhealthy market practises” as the reason for the discontinuation of the discounts and said that the vendors are indulging in promotional activities which is prohibited under the Delhi Excise Act..However, the petitioners have now argued that the government’s action is arbitrary, disproportionate, discriminatory and violative of their fundamental rights under Article 14 of the Constitution.“…the rules of the game cannot be changed after the game has begun. Power to amend the tender does not exist after the bids are finalized and licenses issued. Clause 15 .2 of the tender would have to be construed as limited to the time until the last date of bids, and not thereafter, else any other interpretation would render the same unconstitutional,” it said..The plea stated that as a result of discounts, healthy competition and consumer choice is taking place and that the retailers are entering into arrangements with L1 licensees and the latter in turn have arrangements with manufacturers including for payment and credit terms and discounts and therefore it appeared that the order had been passed “at the behest of certain influential persons who are losing market because of fair competition in terms of discounts”.“It is the survival of the fittest. It is not explained or specified in the order, except using umbrella terms, how healthy competition, market forces and consumer choices are being affected by the discounting,” the petition stated. .The petition has been filed through advocates Sanjay Abbot, Tanmaya Mehta and Honey Uppal.