To ensure transparency in liquor trade, Punjab govt abolishes L-1 A license

CHANDIGARH, March 24, 2017: In a major step towards ensuring transparency in liquor trade in the state, Punjab government today abolished the L-1A license, which had been introduced by the previous Akali-BJP government.

Disclosing this here today, an official spokesman said, the present government has brought several reforms in the ‘excise policy’ to make this trade more transparent with the main aim to safeguard the interests of the consumers and the licensees.

The major hurdle experienced by the licensees in this trade was introduction of L-1A license (super whole sale licence) by the previous government. Major relief has been given to the licensees in the new Excise Policy 2017-18 by abolishing L-1A license.

Further, L-1 license (whole sale licence) has been given as a matter of right to the retailers, doing away with the discretion of the Government in allocating whole sale licences. This is a major step towards providing a transparent and fair governance.

In order to uproot the menace of bootlegging and illegal sale of the liquor, clear directions have been given to the DCs and SSPs to curb this menace of illegal sale of liquor. The spokesman assured that only legal transfer of liquor will be allowed and strict action will be taken against bootleggers who will indulge in illegal transfers from one area to another. Fair competition in the trade will be ensured and licensees will be able to trade without any fears and pressures.

Further, the quota of PML and IMFL has been significantly reduced by 14% and 20%, respectively. In addition to these reforms, the group sizes have been increased. With the increase in group sizes, the number of groups has significantly come down to 148 as compared to 626 in the previous year. Decrease in the number of groups will ensure fair competition and will eliminate the problems of under cutting and bulk sales.

Further, decrease in the number of groups will also help in mitigating the effect of closure of liquor vends within 500 meters area on National and State Highways.

Many other demands of licensees have also been considered in the new Excise Policy 2017-18. Special License Fee and Additional License Fee have been abolished. This will eliminate the confusion and problem of reconciliation between the distilleries and licensees.

Price band of open quota has been reduced from up to 15% to 5%. Licensees can lift up to 20% of their basic quota of PML, IMFL and beer as additional quota at half the license fee and other levies. Special assessed fee on 75 degree PML has been abolished. Licensees can convert 10% quota of PML into IMFL and vice versa up to EDP of 1200 per case at half the rates of ELF.

To make the trade more retailer friendly maximum price cap for liquor has been abolished. From the strict penalties enshrined in Excise Policy 2017-18, it is very clear that illegal trade practices like bootlegging, illegal manufacturing of liquor etc. will not be tolerated.