Chandigarh Liquor Vend Auction Yields Record-Breaking Revenue Amid Controversy
The Chandigarh administration has successfully auctioned 83 out of 97 liquor vends, generating a substantial revenue boost, with one vend in Palsora fetching an unprecedented Rs 16 crore against a reserve price of Rs 11.41 crore. This landmark sale occurred during the first e-tender opening under the new excise policy for the year 2026-27, held at Hotel Mountview in Sector 10 on Thursday.
Record-Breaking Bids and Revenue Surge
The auction results were nothing short of spectacular. Following the Palsora vend, the second-highest bid was Rs 12.27 crore for the Dhanas vend, surpassing its reserve price of Rs 9.62 crore. The third-highest bid reached Rs 11.52 crore for a location in Sector 61, against a reserve of Rs 8.21 crore. In total, the UT excise department collected Rs 496.81 crore in license fees, marking an impressive 29% increase over the combined reserve price of Rs 385.24 crore for the 83 licensing units. Additionally, the department received Rs 3.9 crore in participation fees.
Bidding Process and Technical Qualifications
The department received 195 electronic tenders or bids for 84 licensing units. However, one single bidder for LU-77 was not technically qualified, leaving 83 units successfully auctioned. A tender process has been initiated for the remaining 14 licensing units. A department official expressed optimism, stating, "In light of the overwhelming response from bidders, the department is well placed to complete the allotment of the remaining vends successfully and is likely to realise revenues significantly exceeding the fixed reserve price, thereby substantially advancing the achievement of its revenue targets."
Allegations of Procedural Violations
Despite the success, the auction faced controversy. Darshan Singh Kler, president of the Wine Contractors Association Chandigarh, submitted a representation to the excise and taxation commissioner, alleging "illegal acceptance of bid documents after the prescribed cut-off time, and violation of Clause 14 of the Excise Policy 2026-27, by some of the participating bidders." In response, a department spokesperson clarified, "All the bidders submitted their bids online and no manual bids were accepted."
Policy Measures Against Cartelisation
The new Excise Policy includes provisions to prevent monopolistic practices. It restricts allotment to a single person, entity, family, company, or firm to a maximum of 10 licensing units only, aiming to curb cartelisation and promote fair competition in the liquor trade.
Historical Context: Top Sellers Over Six Years
To provide perspective, here is a historical overview of top-performing vends in Chandigarh over the past six years:
- 2026: Palsora – Reserve Price: Rs 11.41 crore, Bid: Rs 16.71 crore
- 2025: Palsora – Reserve Price: Rs 10.22 crore, Bid: Rs 14 crore
- 2024: Dhanas – Reserve Price: Rs 8.33 crore, Bid: Rs 9.18 crore
- 2023: Palsora – Reserve Price: Rs 9.60 crore, Bid: Rs 11.65 crore
- 2022: Dhanas – Reserve Price: Rs 10.39 crore, Bid: Rs 12.78 crore
- 2021: Dhanas – Reserve Price: Rs 7.95 crore, Bid: Rs 11.55 crore
This data highlights the consistent high performance of locations like Palsora and Dhanas, underscoring the lucrative nature of Chandigarh's liquor vend auctions and their critical role in boosting state revenue.
