Indore/Bhopal/ Jabalpur: The cash-deprived Madhya Pradesh government has to now either take control of the alcohol business in the state or accept tenders for the trade of private companies. The state government was once very adamant to reopen liquor shops to earn quick money.
The Madhya Pradesh High Court gave the options to private business owners to either give in their licenses or continue their shops following the mandatory terms.
The problem was raised in the court as the liquor association wanted the government to amend the terms for the trade of alcohol in the state in light of the decline in sales due to the nearly 70 days’ of lockdown.
The government was pressurizing the vendors to continue business with all the limitations issued by the lockdown. The business hours were reduced from 12 hours to less than six hours while the bars in malls were forced shut resulting in huge losses to the traders.
The court’s division bench consisting of Chief Justice A.K. Mittal and Justice V.K. Shukla said the state government is permitted to auction shops again if liquor contractors don’t present the affirmation within the given time period.
The petitioners’ lawyer Naman Nagrath said that the court said that recovery of dues from the petitioners in case of re-auctioning of shops will depend on the decision of the court petitions being heard.
The counsel said that the division bench reserved the state from taking any forceful action against the petitioners during the pendency of the writ petitions till next date of hearing on June 17.
A petition filed by 30 liquor contractors along with 23 other petitions having common issues came up for hearing in the court. In their petition, the liquor contractors asked for help from the court to the state government to either modify the terms of alcohol contract or evoke the entire bidding procedure for the present finances in view of the slump caused by the pandemic.
Around 60 percent of outlets selling Indian Made Foreign Liquor (IMFL) were closed in Madhya Pradesh for over a week after a dispute between the state government and the liquor contractors.
The liquor contractors began surrendering their licenses from Saturday just a day after the court offered the option. In Indore, a group of liquor contractors surrendered their contract, through a letter to the excise department. The traders asked the excise department to return part of the earnest money amounting to Rs 58 crore. After Indore, liquor contractors of Bhopal and of other districts may surrender their contracts.
On the other hand, the state government has planned for fresh auction of liquor contracts to be returned by the contractors. The file related to fresh auction of liquor contract has again been sent to Chief Minister Shivraj Singh Chouhan.
The tenders of those contractors who will not submit affidavit will be cancelled. After the cancellation of tenders, the excise department will be free to let shops reopen through fresh tenders, the court said. The court said the contractors who will submit affidavit will be allowed to run shops on the present terms.
The court gave assurance to the business owners that the government won’t charge them if they give in their licenses. The state government gave relief to the liquor contractors by raising the prices of liquor by 10 per cent. But the contractors in many districts refused to reopen shops.
The state government has constituted a Group of Ministers for the year 2020-21 to take decisions on the execution of excise policy and other associated issues and also to take essential and immediate policy decisions in the revenue interest on the circumstances made.
The Group of Ministers comprised under the chairmanship of Narottam Mishra, Minister of Home and Public Health and Family Welfare, Food, Civil Supplies and Consumer Protection, Cooperative Minister Govind Singh Rajput and Tribal Welfare Minister Meena Singh Mandve will be the members. The Principal Secretary will be the Secretary of the Commercial Taxes Committee.
