HARYANA LIQUOR LICENSE (AMENDMENT) RULES, 2021

PREAMBLE

In exercise of the powers conferred by Section 59 of the Haryana Excise Act, 1914 (Punjab Act 1 of 1914) and with reference to Haryana Government, Excise and Taxation Department, notification No. 09/X-1/P.A.1/1914/S.9/2020, dated the 28th January, 2020, I, Shekhar Vidyarthi, Excise Commissioner, Haryana, exercising the powers of Financial Commissioner hereby make the following rules further to amend the Haryana Liquor License Rules, 1970, namely:-

Rule 1.

(1)     These rules may be called the Haryana Liquor License (Amendment) Rules, 2021.

(2)     They shall come into force with effect from the 12th day of June, 2021.

Rule 2.

In the Haryana Liquor License Rules, 1970 (hereinafter called the said rules), in rule 24, -

(i)       for clause (i), the following clause shall be substituted, namely:-

"(i) for a license in form L-1,-

(a)      `1.25 crore in case the annual quota of IMFL in an excise district is less than or equal to 10 lakh Proof Litre.

(b)      `1.50 crore in case the annual quota of IMFL in an excise district is more than 10 lakh Proof Litre and less than or equal to 25 lakh Proof Litre.

(c)      `1.75 crore in case the annual quota of IMFL in an excise district is more than 25 lakh Proof Litre and less than or equal to 50 Lakh Proof Litre.

(d)      `2.25 crore in case the annual quota of IMFL in an excise district is above 50 Lakh Proof Litre.

Provided that no such license shall be issued unless a refundable security/bank guarantee equivalent to 30 % of the license fee for each L-1 license is deposited which shall be liable to be forfeited or adjusted for any amount or penalty due under the Act. The licensee shall also submit, before the commencement of business, a solvency certificate of value equal to 10% of the license fee of zones allotted to him/her, duly attested by concerned" Tehsildar.".

(ii)      for clause (i-bb), the following clauses shall be substituted, namely:-

"(i-bb) for licenses in form L-4/L-5:-

Provided that L-4/L-5 licenses shall also be granted within the area notified under Gurugram-Manesar Urban Complex Plan 2031 and also such places where Haryana State Industrial Development Corporation has developed Industrial Model Townships and Theme/Specialized Parks like Industrial Model Townships, Manesar, Industrial Model Townships, Bawal, Industrial Model Townships, Rohtak, Industrial Town Park Manesar, Technology Park, Panchkula. L-4/L-5 licenses shall also be granted to the reputed restaurants in the industrial towns Dharuhera and Bahadurgarh.

Provided further that such licensees shall be allowed one main bar and three additional points, alongwith room service (L-3), without any further fee. Such licensee shall further be allowed to operate the main bar round the clock. By virtue of having L-3 license, these hotels are allowed to keep liquor in the refrigerators kept in the hotels rooms along with other food articles and beverages. In case the licensee wishes to sub-lease one or more additional points, then a fixed fee of Rs. 10 Lakh per additional point shall be charged from such licensee. L-4/L-5 licensee bars can remain open up to 12.00 hours (Midnight). However, these licensed Bars may remain open upto 01:00 A.M. in the districts of Gurugram, Faridabad and Panchkula. The timings of bars may be extended by one hour on payment of additional annual fee of Rs. 10 Lakh per annum. However, timing of these bar licenses, situated in the districts of Gurugram, Faridabad and Panchkula, can be further extended upto 06:00 A.M.) on payment of additional annual fee of Rs. 20 Lakh per annum. Sale of liquor including imported foreign liquor made through L-4/L-5 outlets (bars) shall attract VAT @ 18 % + surcharge @ 5% on VAT.

Provided that such licensee shall be allowed one main bar and two additional points, alongwith room service (L-3), without any further fee. Such licensee shall further be allowed to operate the main bar round the clock. By virtue of having L-3 license, these hotels are allowed to keep liquor in the refrigerators kept in the hotels rooms along with other food articles and beverages:

Provided further that L-4/L-5 license shall also be granted provisionally to a Hotel located anywhere in the State subject to the condition that the applicant shall procure star classification of 4 star and above from the Ministry of Tourism, Government of India within the financial year of grant, failing which the provisional license shall not be renewed subsequently. The licensee shall apply for the star rating within one month of obtaining the L-4/L-5 license:

(c) for Hotels having grading of 3 Star,-

Provided that such licensee shall be allowed one main bar, alongwith one additional point and room service (L-3), without any further fee. By virtue of having L-3 license, these hotels are allowed to keep liquor in the refrigerators kept in the hotels rooms along with other food articles and beverages.

Provided further that L-4/L-5 license shall also be granted to three star and above categories of star hotels located anywhere in the State. L-4/L-5 licenses may also be granted to those hotels having facilities equal to three star and above categories, located anywhere in the State, by the Government.

Provided further that such licensee of category (a), (b) and (c) mentioned above shall also be allowed to serve liquor in functions, parties, events and meetings, held in up to three (03) of their identified and approved halls including banquet halls and ground floor lawns, sourced from the main bar, on payment of a one-time fee equal to 50% of his annual license fee.

The L-4/L-5 licensees shall be allowed to procure Imported Foreign Liquor (BIO) from any of L-1BF licensee or nearest two L-2BF licensees as per choice subject to the payment of assessment fee and permit fee:

Provided that a refundable security of `5,00,000 Lacs shall be taken from the L-4/L-5 licensees in addition to the license fee.";

(d) For a license in form L-4/L-5, for clause (a), (b), (c), (d) and (e), the following clauses shall be substituted namely:-

Provided that a composite security of `6,00,000 Lacs shall be taken from Haryana Tourism Corporation and Haryana Urban Development Authority in addition to the composite license fee.

Provided further that any L-4/L-5 licensee is found indulging in sale of liquor in bottles instead of pegs, except in case of Wine/Beer/RTB/Cider/Liqueur, sale of unaccounted liquor and sale of liquor without holograms/EALs his license shall be cancelled forthwith and the security amount shall be forfeited. Such licensee and premises shall also be debarred for holding any license under the Excise Act for a period of two years.

Note 1.-- Any additional point above the points already allowed, shall be allowed on payment of a fee equal to 20 % of the annual license fee for each such point and maximum number of three additional points per license shall be allowed.

Note 2.-- In case of bars operated by Haryana Tourism and Haryana Urban Development Authority in their Gymkhana and Golf Clubs, they shall be allowed additional point on payment of a fee equal to ` 1 lakh for each such point.

(iii)     in clause (ii), for the figure and sign "1,00,00,000" the figure and sign "75,00,000", shall be substituted:

Provided that bottling plants hitherto having L-15 License, shall be allowed to take L-11 license after paying one time conversion fee of Rs. 10.00 lakh alongwith other fees of L-11 license.

(iv)    after clause (ii-b), for the existing proviso, the following proviso shall be substituted, namely:-

"Provided that no new letter of intent shall be granted to the proposed Bottling Plant till actual utilization of Extra Neutral Alcohol reaches 90% of the installed production capacity of the existing distilleries in the State. Further, no letter of intent shall be revalidated in the year 2021-22 for a proposed Bottling Plant, if the applicant fails to set up the plant within the prescribed time under the provisions of his letter of intent".

(v)      for clause (ii-c), the following clause shall be substituted, namely:-

"(ii-c) The bottling fee on Indian Made Foreign Spirit shall be levied as under:-

Provided that bottling fee shall be leviable on liquor for export as well as on liquor on local consumption, if no franchise fee is levied.

(vi)    in clause (iv), for the existing proviso at the end, the following proviso shall be substituted, namely:-

"Provided that a license in form L-12A shall be granted by the Deputy Excise and Taxation Commissioner (Excise) to an individual beyond possession limit for serving liquor during a day. The following categories shall apply online for grant of L-12A license:-

(i)       for serving liquor in banquet halls, farm houses, community centres, public parks/places of Haryana Sahari Vikash Pradhikarn, dharamshalas holding functions, get-togethers and marriage parties.

(ii)      for licensed hotels, restaurant and clubs for serving liquor outside their licensed premises on a temporary basis for hosting a function on a specific day.

(iii)     for individual obtaining license to serve liquor at a private place for a day, beyond the possession limit.

The commercial places like Banquet Halls, Hotels having Party Hall/Lawns shall have to mandatorily register with the Excise Department in the office of Deputy Excise and Taxation Commissioner (Excise) of the respective district. The annual registration fee of Banquet Halls and Hotels having Party Halls/Lawns shall be as under:-

The fee structure for L-12A license shall be as under:-

The application for grant of L-12A license at all the commercial venues shall mention the details of caterer i.e. name and style, GSTIN, the approximate number of guests and the quantity of liquor.".

"Provided further that in case any banquet hall/hotel is found serving liquor without a valid L-12A License, a penalty of `50,000/- shall be imposed for first offence, `1,50,000/- for second and third offences. Further, in case of subsequent violations, such banquet hall/hotel shall be debarred for grant of any excise license for a period of one year.

(vii)   for clause (iv-b), the following clauses shall be substituted, namely:-

"(iv-b) for a license in form L-12C,-

Provided that L-12C licenses shall be granted to the Clubs of repute situated in the district headquarter cities, except as provided hereunder, having infrastructure and level of facilities required to meet the parameters and condition prescribed by the District Level Committee constituted for this purpose. The club having L-12C license shall be entitled to all the facilities granted to L-4/L-5 having grading of 3 star. The fee of this license shall be Rs. 20 Lakh:

Provided further that a new license in the form of L-12C for residential condominium shall be allowed at district headquarter cities. The main bar shall be equivalent to the L-4/L-5 license while any additional mini club within the condominium shall also get license @ 20% of the license fee of its main bar for each such additional mini club. This will be subject to the condition that only the residents of the condominium or their guests shall be allowed to utilize this facility:

Provided further that in case of L-12C license granted to Sirhind Club, Ambala, the army official shall be allowed to utilize their quota through CSD canteen while the civilian members shall not be entitled for the liquor supplied through CSD canteen:

Provided further that any L-12C licensee is found indulging in sale of liquor in bottles instead of pegs, except in case of Wine/Beer/RTB/Cider/Liqueur, sale of unaccounted liquor and sale of liquor without holograms/EALs his license shall be cancelled forthwith and the security amount shall be forfeited. Such licensee and premises shall also be debarred for holding any license under the Excise Act for a period of two years.

The L-12C licensees shall be allowed to procure Imported Foreign Liquor (BIO) from any of L-1BF licensee or nearest two L-2BF licensees as per choice subject to the payment of assessment fee and permit fee:

L-12C licensee bars can remain open up to 12.00 hours (Midnight). However, these licensed Bars may remain open upto 01:00 A.M. in the districts of Gurugram, Faridabad and Panchkula. The timings of bars may be extended by one hour on payment of additional annual fee of Rs. 10 Lakh per annum. However, timing of these bar licenses, situated in the districts of Gurugram, Faridabad and Panchkula, can be further extended upto 06:00 A.M.) on payment of additional annual fee of Rs. 20 Lakh per annum.

Provided further that a refundable security of `5,00,000 Lacs shall be taken from the L-12C licensees in addition to the license fee.";

Note:- Any additional point, except the points already allowed, shall be allowed on payment of a fee equal to 20 % of the annual license fee for each such point and maximum number of three additional points per license shall be allowed.

(viii)  for clause (iv-c) and entries there against the following clauses and entries there against shall be substituted namely:-

"(iv-c) for a license in form L-12CC,-

Provided that license to serve liquor shall only be granted to Golf Clubs having facilities of 9 holes or more and they shall not be permitted as an additional point attached to any hotel or any type of bar license. The L-12CC Club bar licensee can remain open up to 12.00 hours (Midnight). However, these licensed Bars can remain open upto 01:00 A.M. in the districts of Gurugram, Faridabad and Panchkula. The timings of bars can be extended by one hour on payment of additional annual fee of Rs. 10 Lakh per annum. However, timing of these bar licenses, situated in the districts of Gurugram, Faridabad and Panchkula, can be further extended upto 06:00 A.M. on payment of additional annual fee of Rs. 20 Lakh per annum.

The L-12CC licensees shall be allowed to procure Imported Foreign Liquor (BIO) from any of L-1BF licensee or nearest two L-2BF licensees as per choice subject to the payment of assessment fee and permit fee:

Provided further that any L-12CC licensee is found indulging in sale of liquor in bottles instead of pegs, except in case of Wine/Beer/RTB/Cider/Liqueur, sale of unaccounted liquor and sale of liquor without holograms/EALs his license shall be cancelled forthwith and the security amount shall be forfeited. Such licensee and premises shall also be debarred for holding any license under the Excise Act for a period of two years.

Provided that a refundable security of `5,00,000 Lacs shall be taken from the L-12CC Club bar licensees in addition to the license fee.";

(ix)    in clause (v), for clause (i) and entries there against, the following clause and entries there against shall be substituted, namely:-

"(v) (i) The annual license fee for the wholesale outlet of country liquor (L-13) shall be as under:-

(1)     `40.00 lakh in case the annual quota of country liquor in an excise district is equal to or less than 25 lakh Proof Litre.

(2)     `45.00 lakh in case the annual quota of country liquor in an excise district is more than 25 Lakh and less than 50 Lakh Proof Litre.

(3)     `60.00 lakh in case the annual quota of country liquor in an excise district is equal to or more than 50 Lakh Proof Litre.

Provided that no such license shall be issued unless a refundable security/bank guarantee equivalent to 50 % of the license fee for each L-13 license is deposited which shall be liable to be forfeited or adjusted for any amount or penalty due under the Act. The licensee shall also submit, before the commencement of business, a solvency certificate of value equal to 10% of the license fee of zones allotted to him/her, duly attested by concerned" Tehsildar.".

(x)      for clause (i-c) and entries there against, the following clause and entries there against shall be substituted, namely:-

"(i-c) for a license in form L-1AB ` 40,00,000;"

(xi)    for clause (i-cc) and entries there against, the following clause and entries there against shall be substituted, namely:-

"(i-cc) for a license in form L-1AB-1,-

(xii)   for clause (i-e) and entries there against, the following clause and entries there against shall be substituted, namely:-

"(i-e) for a license in form L-1B,-

(xiii)  for clause (i-eeee), the following clause shall be substituted, namely:-

" (i-eeee) For a license in form L-1BF. -

(a)      The license fee for L-1BF shall be `1,50,00,000.

(b)      The license shall be granted by inviting online application on the departmental portal.

(c)      The applicant shall be allowed to make only one application. The applicant shall be, a wholesale licensee in the State of Haryana or any other State, or a proprietor firm or a partnership firm, or, a company registered under the Companies Act, 2013 (Central Act 18 of 2013) or a society registered under the relevant law or a firm registered under Limited Liability Partnership Act, 2008 (Central Act 6 of 2009).

(d)      The applicant shall deposit an application fee of `2,00,000. The application fee shall be non refundable and non adjustable. The application shall also be accompanied with an earnest money of `10,00,000. The application shall be accompanied with documents establishing the identity of the applicant. Identity proof(s) of all the person(s), like proprietor, all the partners, directors and the authorized person, if there is any one so authorized, should be uploaded online along with the application.

(e)      All the applications which are found in order in accordance with the provisions of excise law shall be considered as eligible. The Department shall publish list of eligible applicants on its official website and, this will be treated as date of allotment of his license. The license shall be valid for a period starting from the day of grant of license or 12th June, 2021 whichever is later.

(f)       The eligible applicant shall deposit security amount equal to 25% of the license fee and additional license fee, if applicable, within a week, or such other time as may be prescribed in the notice, of the date of allotment. The earnest fee shall be adjustable towards the payment of amount of security. The licensee shall also be required to declare the storage capacity of his liquor godown at the time of grant of license.

(g)      The earnest money of the applicant shall be forfeited in the following cases:-

(i)       In case the applicant furnishes any false or forged document in his application

(ii)      In case the applicant is found guilty of indulging in any malpractice

(iii)     If the successful applicant fails to deposit installment of security amount within seven days of the allotment.

(iv)    If the successful applicant fails to furnish documents as he is required to submit to the department within the seven days of the allotment or for any other reason as the Excise Commissioner may think fit.

(h)     If the department considers that sufficient number of eligible applications have not been received, it shall initiate another round(s) of allotment by inviting more applications.

(i)       If excessive large number of applications are received, the Excise and Taxation Commissioner may reduce quota of all the licensees in equal amount so that the total minimum quota of all the licensees is in commensurate with the requirement of the State.

(j)       The eligible applicant shall submit all other documents as are required under the provisions of the notice, instructions and the Punjab Excise Act, 1914 and the rules framed there under.

(k)      The applicant shall be treated as licensee once he has deposited his security amount.

(l)       The successful applicant shall pay the license fee and additional license fee, if applicable, in eight monthly installments each equal to 10% of the license fee and additional license fee, if applicable. The first of the eight installments shall be paid by the last working day of the month of allotment. The remaining seven installments shall be paid by 15th of each month, starting from the month following the month of allotment, till all seven installments are received.

In case, the license is granted after the month of September, 2021, the 80% of the license fee shall be divided equally into monthly installments in such a manner that the whole amount is received by the 15th April, 2022. The first of theses installments shall be paid by the last working day of the month of allotment and remaining monthly installment shall be paid by 15th of each month following the month of allotment. The remaining part of the license fee shall be adjusted from the 25% security amount. The balance amount from security, if any, shall be refundable after adjusting any amount due towards licensee.

Interest shall be leviable for the period of delay in depositing the license fee in accordance with the provisions of retail licensees of Indian Made Foreign Liquor and Country Liquor.

(m)    The minimum quota for L-1BF License shall be fixed as under:-

(a)      Whisky, Scotch, Rum, Vodka, Gin, Brandy etc. 18000 cases

(b)      Beer 4500 cases

(c)      Wine, Cider, Liqueur etc. 7500 cases

Provided that the licensee shall have to lift the minimum quota as mentioned above in the financial year. In case of failure to lift the minimum quota shall attract a penalty of `3000 per case of whisky and wine as mentioned above in (i), (iii) and `1500 per case of beer as mentioned above in (ii). The quota shall be monitored on quarterly basis. Penalty shall be leviable for deficient quantity of quota lifted at the end of each quarters calculated on cumulative basis. In case of shortage of quota penalized in a quarter, the same quota shall not be penalized again in any subsequent quarters(s). Each quarter shall have 25% of the annual quota of each segment. The quota of wine shall be allowed to be transferred on request to the segment of whisky and vice-versa to be computed in cases without any additional fees.

(n)     The licensee shall also be entitled to 'Additional Quota" which will be 50% of 'minimum quota' without any additional license fee. It will be available after exhausting his 'minimum quota'.

(o)      The assessment fee and permit fee shall be levied as under:-

(p)      VAT on Imported Foreign Liquor (BIO) shall be charged at the rate of 10% with surcharge @ 5%.

(q)      A penalty of `5000 per bottle, irrespective of size of bottles involved, shall be imposed on every unaccounted bottle of whisky and wine found at the L-1BF premises, or at any other premises like L-1, L-2, L-4 & L-5, L-12C, L-12G, L-10B etc. The penalty shall be imposed on the licensee in whose premises it is found. In case of Beer the penalty shall be `2000 per bottle irrespective of size of bottle.

(r)      A penalty of `7000 per Bottle shall be imposed on the stock of Whisky and Wine of Imported Foreign Liquor (BIO) found short at any licensed premises. In case of beer, a penalty of `3000 per Bottle shall be imposed.

(s)      L-1BF license shall not be located at a place which is less than 10 Kilometre from any Custom Bonded Warehouse.

The Custom Bonded Warehouse located in the State of Haryana and intending to supply Imported Foreign Liquor (BIO) shall be required to get themselves registered with the department. The registration shall be granted by the concerned Deputy Excise and Taxation Commissioner (Excise) on payment of registration fee of Rs. 5000/-. The custom bonded warehouse shall be required to submit such information for registration, in such manner, as may be specified by the Excise and Taxation Commissioner.

All consignments of liquor issued from Custom Bonded Warehouse and moving through or within the State of Haryana must be accompanied with a copy of permit, pass issued by Custom Authority and a declaration to be prescribed by the Commissioner.

(t)       The outgoing licensee of L-1BF for the year 2020-2021 may transfer quota of unsold stock of imported foreign liquor as on 11-06-2021 to any of incoming licensees for the year 2021-2022. A transfer fee shall also be levied @ `120 per proof litre for whisky, Scotch, Rum, Vodka, Gin and Brandy etc. and `120 per Bulk litre for wine and `50 per Bulk litre for Beer. In addition, the licensee shall also be required to pay differential amount of assessment fee, if any.

(u)     The L-1BF licensee shall be entitled to make supplies to L-1/L-2BF/L-10B/L-4/L-5/L-12C/L-12G throughout the State.

(xiv)  after clause (i-eeee), the following clause shall be inserted, namely:-

" (i-eeeee) for a license in form L-2BF. -

(a)      The license in form L-2BF shall be granted at a fixed fee.

(b)      The license in form L-2BF shall be granted as follows:-

(i)       The license in form L-2BF shall be granted to certain earmarked retail outlets of Indian Made Foreign Liquor i.e. L-2, at a fixed price which will be determined in accordance with the potential of the vend for Imported Foreign Liquor (BIO). The license fee of such retail outlets of Indian Made Foreign Liquor (L-2) shall be displayed in the excise arrangement separately and will be over and above the tender amount of the vend. Each such L-2BF shall be granted a minimum quota of Imported Foreign Liquor (BIO) in terms of cases of whisky, Beer and Wine. The minimum quota of such L-2BF shall be displayed in the excise arrangement. The security and license fee of L-2BF will be recovered in accordance with the provisions as are applicable for recovery of security and license fee of retail outlets i.e. L-2 and L-14A. The provisions of lifting of quota and penalty for non-lifting of quota in case of retail outlets of L-2 and L-14A shall apply mutatis mutandis to these L-2BF licensees. However, the penalty for short-lifting shall be `5000 per case for whisky & wine and `2000 per case for Beer.

(ii)      The license in form L-2BF shall also be granted to Retail outlets of Indian Made Foreign Liquor (L-2) of the State, other than those which are earmarked in the above mentioned (i) at the following license fee and quota:-

(a)      License fee `5,00,000 for minimum quota of 1000 cases comprising of 600 cases of Whisky, 150 cases of Beer and 250 cases of Wine.

(b)      The license fee of L-2BF shall be paid in lump sum in advance.

Both the above mentioned categories of L-2BF licensees will be entitled to additional quota upto 50% of their minimum quota without any additional fee. The quota of Imported Foreign Liquor (BIO) shall be separate from quota of Indian Made Foreign Liquor.

(xv)   for clause (i-g), the following clause shall be substituted, namely:-

"(i-g) For a license in form L-l-C Annual fee at the rates given below against each:-

Provided that in case the distillery/bottling plant/brewery, bottling a particular brand already registered with the Department, wants to register the same brand label from an additional source situated outside the State, it shall only be allowed by Excise and Taxation Commissioner, for a specified period, if he is satisfied that there is a shortage of supply of that particular brand in the State Market. Additional label fee shall be payable for each additional label in case liquor is obtained from more than one source. Any violation in time frame thus specified by Excise and Taxation Commissioner shall attract a penalty of Rs. 5.00 lakh for first offense, Rs. 15.00 lakh for second and third offence and cancellation of brand label & license of such brand owner for subsequent offence.".

Rule 3.

In the said rules, in rule 27-A,-

(i)       in sub-rule (1), for clauses (iii) the following clause shall be substituted, namely:-

Provided that the L-10B licensees shall be allowed to procure Imported Foreign Liquor (BIO) from any of the L-1BF licensee or nearest two L-2BF licensees as per choice subject to the payment of assessment fee and permit fee, prescribed as under:-

Rule 4.

In the said rules, in rule 36-A-,

(i)       for sub-rule (1), the following sub-rule shall be substituted, namely:-

"(1) The allotment of vends in rural and urban areas shall be grouped into three types of Zones, namely urban zones, rural zones and mixed zones. The Command area of a rural zone shall be the geographical area specified for the Zone in the Excise Arrangements. The Deputy Excise and Taxation Commissioner (Excise) will be the competent authority to determine such command area as part of the Excise arrangement. Likewise, in case of mixed zone, the command area shall be the geographical area specified in the excise arrangement for only rural vend of the mixed zone. The location of vends in urban areas will be fixed. The licensee shall have freedom, in the rural areas, to locate his vend(s) at any place within the command area of the Zone, subject to approval of the Deputy Excise and Taxation Commissioner (Excise).

Provided that in case the licenses of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends allotted during the year 2020-21 are renewed, as provided in clause 2.3 in the Excise Policy for the year 2021-22, the excise arrangement finalized in 2020-21 shall continue for policy year 2021-22 as well. However, in case, the licenses of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends of 2020-21 are not renewed, the excise arrangement for policy year 2021-22 shall be prepared afresh as per provisions of clause 2.6 of the Excise Policy for the year 2021-22.

Provided further that if in any case the main vend has to be closed down due to any reason, the licensee shall shift that vend into the command area of that zone with the prior approval of the Deputy Excise and Taxation Commissioner (Excise) of that district.

The allotment of retail outlets of Country liquor and Indian Made Foreign Liquor shall be done in units of Zones. A Zone shall comprise of two retail vends in urbans areas with prefixed locations; two retail vends in rural areas, with flexibility to the licensee to decide the location of these vends anywhere in his command area, two retail vends comprising of one urban vend (in prefixed location) and one rural vend (with flexibility to the licensee to decide the location of this vend anywhere in his command area) in proximity to the location of urban vend, subject to the compliance of other provisions of the policy. The licensee shall have the flexibility to decide the type of vend i.e. Country Liquor only or Indian Made Foreign Liquor only or both Country Liquor and Indian Made Foreign Liquor, subject to the overall limit of two retail vends, and the licensee shall also decide the proportionate quota out of his Zone's quota for each individual vend for Country Liquor/Indian Made Foreign Liquor as the case may be. In case, the existing licenses of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends of 2020-21 are renewed in policy year 2021-22, the provisions of clause 2.2 of excise policy for the year 2020-21 shall prevail.

The Indian Made Foreign Liquor shall include Indian Made Foreign Spirit, Imported Foreign Liquor (BIO), Beer, Wine, Cider and Ready to drink beverages. The process of allotment shall be conducted by a committee consisting of the Deputy Commissioner with Deputy Excise and Taxation Commissioner (Excise), Deputy Excise and Taxation Commissioner (Sales Tax) of the respective district as its members in the presence of the participants who wish to be present on the date of evaluation of e-bids to be published by the department in the newspapers. The allotment of Zone of vends shall be done by way of inviting e-bids. The Deputy Excise and Taxation Commissioner (Excise) shall upload the Geographic Information System coordinates of all L-2, L-14A vends, sub-vends and Tavern located in his district on the web portal of the Department.

After preparing the Excise Arrangement the Deputy Excise and Taxation Commissioner Excise) of the district shall display the same in his office, office of the Deputy Commissioner of the district, office of Deputy Excise and Taxation Commissioner (Sales Tax) of the district as well as office of the Joint Excise and Taxation Commissioner (Range) concerned and on the departmental website www.haryanatax.gov.in and shall invite the objections from the public/stakeholders for two days after the display and shall decide these objections if any within two days. The decision of the concerned Dy. Excise and Taxation Commissioner (Excise) of the district shall be final:

Provided that allotment of un-allotted zones of vends for both the modes of allotments provided under clause 2.3 of the Excise Policy for the year 2021-22, the process of inviting tenders shall be continued by successively reducing the reserve price in the following manner:-

(i)       In the slab of 5% of the original reserve price in case reserve price of the zone is less than Rs. 5.00 crore,

(ii)      In the slab of 3% of the original reserve price in case reserve price of the Zone is more than Rs. 5.00 crore till these are allotted or up to 4th July, 2021, or the next working day in case 4th July, 2021 happens to be a holiday, whichever is earlier and the decision of Excise and Taxation Commissioner in this regard shall be final:

Provided further that in case of cancellation of a license, the process of re-allotment shall be initiated by inviting e-bids through advertisement immediately. The reserve price for re-allotment shall be computed proportionately for the remaining period for which the Zone of vends is to be re-allotted using the original license fee. In case no bid is received, the reserve price shall be further reduced by 10 % of the above mentioned original reserve price or Rs. 50 lac, whichever is lower and the process of inviting e-bids shall be repeated till the Zone of vends is re-allotted. This re-allotment shall be done at the risk and cost of original licensee.".

(ii)      for sub-rule (5), the following sub-rule shall be substituted, namely:-

"(5) The bidder shall have to deposit a participation fee of `80,000/- for each Zone. The participation fee is non refundable and non adjustable. The participation fee shall be deposited in the Office of Deputy Excise and Taxation Commissioner (Excise) concerned either in cash or by demand draft in favour of Deputy Excise and Taxation Commissioner (Excise).".

(iii)     In sub-rule (12), the following sub-rule shall be substituted, namely:-

"(12) All successful allottees, before the start of operation of vends in his zone, shall be required to file an affidavit and a solvency certificate. Affidavit shall be on a non-judicial stamp paper of the value of Rs. 100/- in the format prescribed in the form. The affidavit will be to the effect that he has not been convicted of any non-bailable offence by a criminal court or of any offence punishable under the Punjab Excise Act or the Opium Act, the East Punjab Opium Smoking Act, 1948, the East Punjab Molasses (Control) Act, 1948, the Indian Power Alcohol Act, 1948 applicable to Haryana or the Narcotic Drugs and Psychotropic Substances Act, 1985. The affidavit will also be to the effect that he is not a defaulter and has paid all past dues of excise revenue in Haryana. The failure to furnish the affidavit or solvency certificate prescribed herein or furnishing false affidavit shall be sufficient ground for cancellation of license, which shall be re-allotted at his cost and risk:

Provided that all successful allottee shall submit certain documents namely proof of identity having his/her photograph like voter ID card, passport, ration card, driving license, Aadhar Card (UID) etc., and a surety bond in the prescribed format. All the documents have to be duly attested by a Notary Public or Gazetted Officer and duly stamped with his name and designation. The documents shall be submitted before the start of his/her business. The successful allottee shall provide a photocopy of his PAN Card issued by the Income Tax Department along with other documents.".

(iv)    In sub-rule (17), the following sub-rule shall be substituted, namely:-

"(17) The licensee to whom a retail liquor outlet of country liquor (L-14A) or Indian Made Foreign Liquor (L-2) is allotted, shall be bound to lift its entire annual quota of Country Liquor or Indian Made Foreign Liquor on quarterly basis from the licensed wholesale outlet of Country Liquor (L-13) and licensed wholesale outlet of Indian Made Foreign Liquor (L-1) located at every district in the State. The lifting of quota shall mean physical lifting of liquor from the licensed wholesale outlet of Country Liquor (L-13) and licensed wholesale outlet of Indian Made Foreign Liquor (L-1). It shall be obligatory for a licensee to lift entire basic quota of Country Liquor and Indian Made Foreign Liquor to his/her Zone of vends as per the schedule below:-

The licensee shall have to lift 100% of the quota allocated to him as per the schedule described above. Failure to lift prescribed quarterly quota shall attract short quota penalty. Further, the licensee shall have to lift the unlifted quota of previous quarter in the next quarter.

Non compliance of the provision regarding lifting of quarterly quota shall attract penalty at the rate of Rs. 90/- and Rs. 150/- per proof litre of Country Liquor and Indian Made Foreign Liquor respectively for the deficient quantity.

(v)      for sub-rule (19), the following sub-rule shall be substituted, namely:-

"(19) No person to whom a license for retail liquor outlet is granted shall establish the same on such premises as is situated at a distance of less than 150 meters from the main gate of a recognized school/college/main bus stand and a place of worship. However, Excise Commissioner can relax such distance for the location of retail liquor outlet for 150 meters to 75 meters on the recommendations of Deputy Excise and Taxation Commissioner (Excise). Further, in urban areas, the retail liquor outlets shall be located in the market places. However, this provision shall not apply in such cases where a new recognized school/college/main bus stand or a place of worship comes up with a distance of 150 meters during the currency of the year subsequent to the establishment of vend in the year 2021-2022.".

(vi)    for sub-rule (22), the following sub-rule shall be substituted, namely:-

"(22) The Excise and Taxation Department shall offer/facilitate setting up liquor vends having high revenue potential in Haryana Sahari Vikash Pradhikarn, Gurugram Metropolitan Development Authority, Haryana State Infrastructure and Industrial Development Corporation area and land of Haryana Tourism Corporation/Urban and Rural Local Bodies. However, the rent thereof, as decided by the concerned Department/Corporation, shall be paid by the licensees directly to such Department/Corporation. The Deputy Excise and Taxation Commissioner (Excise) shall monitor and ensure its compliance on a quarterly basis. However, in case of Haryana Tourism Complexes, only L-2 vends will be allowed. No Tavern will be allowed with the L-2 vends in the tourist complexes.".

(vii)   for sub- rule (25) to (27), the following sub-rules shall be substituted, namely:-

"(25) Every successful allottee of retail Zone of vends shall be required to deposit a security amount equal to 20% of the annual license fee of the Zone of vends. The schedule for payment of installments of security shall be as under:-

In case of bids that exceed the reserve price by more than 25%, the bidder shall have to deposit an amount equal to 15% of his bid amount in addition to the amount applicable as per Earnest money deposit slabs. In case of successful bid, 15% of his bid money shall be deducted by the system and shall be deposited as 15% security.

The 83% of his bid money/license fee shall be payable by him in monthly installments each payable by last working day of each month starting from the month of June, 2021, and every subsequent month. The payment shall continue till full amount of 83% is paid by the licensee by way of monthly installments. A part of his security, equal to 17% of his bid money/license fee, shall be adjusted at the end towards his license fee after the payment of installments amounting to 83% of his bid money/license fee. The adjustment shall be made over a period of last two months in two equal installments; each equal to 8.5% of his bid money/license fee.

"(26) The balance security equal to 3% of his bid money/license fee shall be refunded after adjusting any amount found outstanding or unpaid towards him by the end of July, 2022. This amount shall be refunded by the Deputy Excise and Taxation Commissioner (Excise) of the District. No interest of any kind shall be payable on the security amount. The schedule of instalments shall be as under:-

If an allottee/licensee fails to make the full payment of security in the prescribed time, his license shall be cancelled automatically and security deposited, if any, forfeited. In case of failure to adhere to the prescribed time for payment of any of the ten installments, interests on late payment shall be charged from the first day of the month of default till the date of payment @ 18% per annum.

In case any vend or vends of any zone are closed or are subsequently closed on account of falling under Covid Containment Zone, its license fee and quota shall be proportionately waived off in proportion of days of closure. For the purpose of computation of proportionate license fee and quota of a closed vend to be waived off, the license fee and quota of a zone shall be equally divided amongst both vends of the zone;

"(27) In case of Zone of vends which are allotted/re-allotted during the currency of the financial year, the security equal to 10% of bid money shall be deposited on the day of allotment and remaining security equal to 10% of bid money shall be deposited within ten days of the date of allotment. The Zone of vends shall come into operation from the day following the date of allotment/re-allotment. The license fee for the month in which the allotment/re-allotment is made shall be payable by the end of the month, in proportion to the remaining days of that month. The remaining amount out of 83% of the license fee shall be payable upto 31.03.2022 in equal monthly installments. Thereafter, his security shall be adjusted as in case of other allotments.

In case the allotment or re-allotment takes place after February, 2022, the 83% of his bid money shall be recovered upto the last date of month in which it is allotted/re-allotted. The installment for the month of allotment/re-allotment shall be computed treating it as a full month.

The date of payment for the month of allotment/re-allotment shall be last working day of the month.

Rule 5.

In the said rules, for rule 36B, the following rule shall be substituted, namely:-

"36B. In order to bring stability in the liquor trade, the licenses of zones of Country Liquor and Indian Made Foreign Liquor shall be renewed at an increase of 10% over and above the "Base License Fee' of each zone fixed for the year 2020-21. The existing licensee shall be given an option to have his license renewed for the policy year 2021-22 (i.e. 12-06-2021 to 11-06-2022) at the enhanced rate of license fee prescribed in the Excise policy for the year 2021-22 and the such licenses will be renewed on the following terms and conditions:-

(A)     (i) Renewal of existing licenses for the policy year 2021-22 will be subject to payment of non-refundable and non-adjustable renewal application fee of Rs. 50,000/- per zone.

(ii) The applicant licensee shall be required to deposit 5% of the license fee of the zone fixed for the year 2021-22 with the renewal application form, as security in addition to the renewal fee.

(iii) If any licensee has interest in more than one zone and he/she requests for renewal of only selected/few zones out of those which he/she had in the excise year 2020-21, the Excise and Taxation Commissioner (Financial Commissioner) at his sole discretion, in the interest of excise revenue without assigning any reason whatsoever, may reject the request.

(iv) In case, the total revenue from enhanced license fee (i.e. 10% increase over base license fee of 2020-21) in the applications received in the State from licensees for renewal of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends is equal to or more than 85% of such proposed license fee revenue from all 1163 zones for the year 2021-22, the renewal requests shall be confirmed/approved by the Excise and Taxation Commissioner (Financial Commissioner).

Provided that in case, total revenue from enhanced license fee (i.e. 10% increase over base license fee of 2020-21) in the applications received in the State from licensees for renewal of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends is less than 85% of such proposed license fee revenue from all 1163 zones for the year 2021-22, the renewal requests shall be subject to confirmation/approval by the Excise and Taxation Commissioner (Financial Commissioner), who may for reasons to be recorded in writing, reject the entire or partial renewal applications. The period of confirmation/approval shall be not more than 7 days from the last date of receipt of such applications/requests.

(v) The complete application form in the prescribed format alongwith required renewal fee and 5% of the licensee fee as security amount must be submitted in the office of Deputy Excise and Taxation Commissioner (Excise) of the respective district from 23rd April, 2021 onwards to 28th April, 2021 (upto 5:00 PM) on all working days.

The Excise and Taxation Commissioner, at his sole discretion, may extend the dates for inviting applications for renewal.

Note:- Incomplete applications for renewal shall be liable to be rejected and renewal fee shall not be refunded or adjusted in any case.

(v)     (a) Notwithstanding other provisions of the Excise Policy for the year 2021-22, in case of zones of retail vends, where no renewal applications has been received till 05-05-2021, the existing licensees for such zones shall be given another opportunity to get their L-2/L-14A license renewed for the year 2021-22. Such licensees shall be renewed at an increase of 11% over and above the base License Fee of such zones for the year 2020-21.

(vi) The applicant licensee who opts for renewal of his zones of vends for the policy year 2021-22 is also required to file an affidavit, with the renewal application form, that he is not a defaulter and has paid all past dues of excise revenue in Haryana. The failure to furnish the affidavit/certificate prescribed herein or furnishing false affidavit shall be a sufficient ground for cancellation of license; which shall be re-allotted at his cost and risk.

Note:- All renewals/allotments of licenses shall be subject to the approval of the Excise and Taxation Commissioner-cum-Financial Commissioner. The Financial Commissioner may reject, without assigning any reason, any renewal/allotment in public interest as the case may be, within 10 days of the date of allotment.

(vii) The applicant who has deposited 5% of the license fee of the zone fixed for the year 2021-22 and whose application for renewal has been accepted by the Excise and Taxation Commissioner (Financial Commissioner) shall be treated as an allottee of zone immediately thereafter.

(viii) The allotment of remaining zones of vends shall be by inviting e-tender through a departmental portal in a completely secure and transparent manner. The reserve price for such zones shall be determined afresh in accordance with the provisions as laid down in clause 2.4 of the Excise Policy for the year 2021-22. The detailed procedure for e-tendering shall be finalized by the Excise and Taxation Commissioner (Financial Commissioner) which shall be displayed by uploading the same on the website of the department www.haryanatax.gov.in. For allotment of such remaining zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends, the procedure as laid down further in the Excise Policy for the year 2021-22 shall be applicable.

(B)     (i) In case, sufficient number of applications for renewal of zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends from the existing licensees of 2020-21 are not received and all such applications received from licensees for renewal of their licenses are rejected by the competent authority, the allotment of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends shall be made afresh by adopting the procedure as laid down in following clauses. For this purpose, the excise arrangement shall be prepared afresh in accordance with the provisions of Excise Policy for the year 2021-22.

(ii) Such allotment of Zone of vends shall be made by inviting e-tenders through a Departmental portal in a completely secure and transparent manner. The detailed procedure for e-tendering shall be finalized by the Excise and Taxation Commissioner which shall be displayed by uploading the same on the website of the Department www.haryanatax.gov.in.

Rule 6.

In the said rules, in rule 37, in sub-rule (11), for clause (a), the following clause shall be substituted, namely:-

"(a) License in Form L-2, L-10, L-10A, L-14 and L-14A:-

In Rural Areas

Sale Hours are 8.00 A.M. to 11.00 P.M. (Night) from April to October and from 8.00 A.M. to 10.00 P.M. from November to March.

In Urban Areas

From 8.00 A.M. to 12.00 (Mid-night) throughout the year.

Provided further that in case of outbreak due to corona virus, all the excise licensees will comply with the directions given with regard to working hours/time schedule for opening & closing of liquor vends/establishments etc. announced by the Ministry of Home Affairs, Govt. of India, State Disaster Management Authority, Haryana and any other competent authority from time to time to contain the spread of Covid-19 and no compensation of any type whatsoever in licence fee, quota etc. will be given to the licensees on account of reduction in working hours.

Rule 7.

In the said rules, in rule 37, in sub-rule (32), for clause (iv), the following clause shall be substituted, namely:-

"(iv) The stock transfer fee shall be levied at the rate `7.00 per proof litre for country liquor, `13 per proof liter for all brands of Indian Made Foreign Liquor and `11 for beer per bulk litre."

Provided further that inter-district transfer of left over stock of the licensee of the pervious year to a current licensee shall be allowed only in case of wholesalers, after approval of the Collector (Excise). The stock transfer fee in such cases shall be ` 9.00 per proof litre for country liquor, ` 15.00 per proof litre for all brands of Indian Made Foreign Liquor and ` 12.00 per bulk litre for beer.

It is further provided that stock surrendered due to determination of wholesale license during the currency of the year shall also be allowed to be transferred to another licensee of the same district or to another licensee of some other district by the Collector (Excise). The stock transfer fee in such cases shall be ` 9.00 per proof litre for country liquor, ` 15.00 per proof litre for all brands of Indian Made Foreign Liquor and ` 12.00 per bulk litre for beer.

Note:- Where the rate of excise duty in the Excise Policy for the year 2021-22 have been increased in case of any type of liquor over the rates of excise duty for the years 2020-21, the differential excise duty on the unsold stock as on 12.06.2021 shall be payable, in addition to the stock transfer fee, if any.

Rule 8.

In the said rules, in rule 38, in sub rule (16A),-

(i)       for clause (a), the following clause shall be substituted namely:-

"(a) The rural vend/sub-vend of a zone shall also have to maintain a minimum distance of 2.5 K.Ms from any urban vend belonging to a different licensee.

It is further provided that Deputy Excise and Taxation Commissioner (Excise) shall be the competent authority to resolve the conflicts and ensure the compliance of the above provisions for the zones situated within his district. The Collector (Excise) shall be the competent authority to resolve the conflicts and ensure the compliance of the above provisions for zones falling under different districts.

The sub-vend shall also be subject to all other provisions of law. The vend/sub-vend is required to be preferably located on the 'phirni' but outside the Lal Dora of the Village. All the provisions with regard to location of vends shall apply to the sub-vends also.

Note:- In case of renewal of licenses of retail zones of Country Liquor (L-14A) and Indian Made Foreign Liquor (L-2) vends, the provisions of clause 1.3.5 of Excise Policy for the year 2020-21 shall prevail.".

(ii)      for clause (aa) the following clause shall be substituted namely:-

"(aa) No license for sale of liquor shall be granted to a shop that is :

(i)       visible from a National or State Highway;

(ii)      directly accessible from a National or State Highway and

(iii)     situated within a distance of 500 meters of the outer edge of the National or State Highway or of a service lane along the highway:

Provided that in case of areas comprised in local bodies with a population of 20000 people or less, the distance of 500 meters shall stand reduced to 220 meters:

Provided further that above restrictions shall not apply to the liquor vends located within the limits of municipal areas.

However, the above provisions shall be subject to the decision in Special Leave Petition (Civil) No. 9046 of 2019 pending before Hon'ble Supreme Court of India:

Provided further that like in earlier years, it shall be the responsibility of the successful bidder to ensure due compliance of the various provisions of Food Safety and Standard Authority of India, Municipal Bye-laws, National Highway Authority of India Act, 1988, Haryana Scheduled Roads and Controlled Areas 2 Restriction of Unregulated Development Act, 1963 or any other law applicable, wherever required.

Note: It shall be the responsibility of the Deputy Excise and Taxation Commissioner (Excise) of the district concerned to ensure the strict compliance of the above stipulated restrictions.

(iii)     clause (f) shall be omitted.

(iv)    for clause (g), the following clause shall be substituted, namely:-

"(g)     (a) For opening a sub-vend, the licensee shall have to obtain a license in form L-14A, L-2/SV on payment of fixed annual fee of `3,00,000/- per sub-vend in rural area. Sub-vend shall be allowed within the command area of the Zone, subject to the prior approval of Deputy Excise and Taxation Commissioner (Excise). For sub-vends in rural areas, the provisions shall be applied as per para (b), (c) and (d) mentioned below.

(b) One sub-vend shall be allowed for each Gram Panchayat with a population upto 4000 (as per 2011 census).

(c) Maximum number of two sub-vends shall be allowed in a Gram Panchayat, if the population of such Gram Panchayat is more than 4000 and less than 8000 (as per 2011 census).

(d) Maximum number of three sub-vends shall be allowed in a Gram Panchayat, if the population of such Gram Panchayat is more than 8000 (as per 2011 census).

It is further clarified that the number of sub-vends in a particular village is allowed irrespective of count of main vend(s) in that particular village.".