Gurgaon Beer Price Scandal: Excise Dept Probes Vends Over Inflated Rates for Bars
Gurgaon beer price probe: Vends accused of overcharging bars

The excise department in Gurgaon has launched a formal investigation into numerous liquor vends across the city following serious allegations of price manipulation for imported beer. The probe centers on claims that these establishments are supplying beer to restaurants and bars at significantly inflated prices, a direct violation of the state's excise policy, while offering the same products to retail customers at much lower rates.

Allegations of Price Manipulation and Policy Violation

According to complaints filed on the CM Window portal, a glaring price disparity has been exposed. A 330ml bottle of beer, such as Corona, is being billed to bars and restaurants at Rs 220 per bottle. Shockingly, the identical bottle is available to individual customers at retail liquor vends for as low as Rs 112 to Rs 120. This practice, as alleged, is not just a pricing anomaly but a calculated move to encourage off-the-book, cash-based purchases, enabling tax evasion.

Rajveev Yadav, a lawyer actively highlighting excise policy violations, brought this issue to light. He pointed out that while the excise department claimed beer prices aren't mentioned in policy, they are explicitly detailed in paragraph 7.1 of the excise policy. Yadav cited the example of Corona beer, noting display boards at vends openly advertise the retail price, proving the massive markup for commercial buyers.

Excise Policy Rules and the Initiated Inquiry

The Haryana excise policy clearly states that bars and restaurants (L-4 licensees) must procure imported foreign liquor only from the nearest L-2BF licensee (liquor vend) after paying all levies. Crucially, the policy mandates that L-2BF licensees cannot charge bars more than 10% above the minimum retail sale price fixed by the policy. The current allegations suggest a blatant disregard for this rule.

A senior officer from the excise department acknowledged the complaints, stating, "There appears to be merit in the complaint and an inquiry has been initiated." This official response confirms the department is taking the allegations seriously.

Links to a Larger Illegal Market

This pricing scandal is not an isolated incident but appears connected to a broader, well-organized racket dealing in untaxed liquor. The probe gains context from a recent raid near Signature Tower, where a large quantity of illegally smuggled imported liquor was recovered from a vend. This operation exposed how diverted liquor, on which no customs or excise duty is paid, fuels the illegal market.

Yadav argues that the inflated pricing for establishments directly fuels this illegal market of untaxed liquor. When bars are charged double the retail price, it creates a powerful incentive for them to seek cheaper, off-the-book supplies, which often come from illicit, duty-evaded stock. He has urged the government to conduct a thorough audit of all bills and accounts from Gurgaon's vends over the past five years to uncover the full extent of the irregularities.

The outcome of this excise department probe is awaited, as it has significant implications for fair trade, tax compliance, and the enforcement of liquor laws in Gurgaon.