Delhi Government Extends Liquor Licenses to 2027 with Fee Increase
In a significant move, the Delhi government has issued orders to renew liquor licenses for the hotel, club, and restaurant category under the current excise policy until the conclusion of the 2026-27 financial year. This decision comes as the formulation of a new excise policy remains pending, officials confirmed on Wednesday.
License Fee Hiked by 10% for Key Categories
The excise department has implemented a 10% increase in license fees for several key categories, including L-17/L-17F, L-18/L-18F, L-19/L-19F, and L-20/L-20F, which fall under the hotel, club, and restaurant segment. This adjustment marks a notable shift in the financial obligations for license holders.
According to the official order, the department retains the authority to review and potentially further increase the license fee in the future. Licensees are required to pay any such increased amounts within a specified timeframe. Failure to comply may result in the suspension of transport permits or other appropriate actions by the department.
Background of Policy Delays and Extensions
The existing excise policy has been operational in Delhi since September 2022, following the scrapping of the 2021-22 regime drafted by the then Aam Aadmi Party (AAP) government amid allegations of irregularities. Initially anticipated in late 2022, the introduction of a new policy has faced repeated delays.
These postponements are attributed to ongoing investigations into the previous policy, the 2024 Lok Sabha elections, and the upcoming Delhi assembly polls in 2025. A Central Bureau of Investigation (CBI) probe led to the arrests of several AAP members, including former Chief Minister Arvind Kejriwal, prompting the government to revert to the older policy framework.
Criticisms and Future Plans
Originally intended as a temporary measure, the current policy has been extended multiple times, retaining several flaws as highlighted by experts. These issues include the promotion of specific brands, an influx of cheap imports, and a subpar retail experience for consumers.
Following the Bharatiya Janata Party (BJP) government's assumption of office in Delhi in February 2025, Chief Minister Rekha Gupta directed officials to initiate the drafting process for a new excise policy. A draft policy has been prepared, aiming to modernize and expand state-run liquor vends by establishing larger, well-stocked stores in shopping complexes.
Under this draft, which is awaiting cabinet approval, the existing structure of four government corporations operating liquor shops will continue. Additionally, officials indicated that similar renewal orders for the L-6 and L-7 categories of retail liquor shop licenses are expected to be issued shortly.
This extension and fee adjustment underscore the government's interim approach to liquor regulation in Delhi, balancing administrative continuity with fiscal adjustments while a comprehensive new policy remains under development.
