To serve interests of liquor mafia, Govt decides to renew liquor licenses for 5 yrs

No focus on e-auction to avoid transparency

Mohinder Verma
JAMMU, Oct 22: Succumbing to the pressure exerted by a senior People’s Democratic Party (PDP) Minister in collusion with liquor mafia, the Coalition Government has come up with a new mechanism for renewal of liquor licenses in blatant violation of the Rules, which are in vogue in Jammu and Kashmir during the past 33 years. The sole objective behind such an unwarranted act initiated for the first time in the State is to serve the interests of the mafia instead of the State.
In Jammu and Kashmir, the Excise Act was enacted in 1958 and in exercise of powers conferred by Sections 3A, 12, 20 and 25 of the Act, the Government in the year 1984 prepared J&K Liquor License and Sales Rules. Since January 1, 1984 these Rules are in vogue in the State.
The J&K Liquor License and Sales Rules, 1984 clearly state: “Licenses for the vend by wholesale and retail of any liquor may only be given for a period of one year from April 1 to March 31. All applications for the grant or renewal of licenses should be received through the proper channel in the Excise Commissioner’s office before the end of October every year. The Excise and Taxation Officer Incharge of the excise range shall lay before the Deputy Excise Commissioner by the 10th of January each year a list of all licenses requiring renewal”.
Though during all these 33 years none of the successive Governments felt it imperative to either formally amend the Rules or tinker with the same by way of issuing orders yet the present Coalition Government has initiated an unwarranted step with the sole objective of watching the interests of liquor mafia instead of the State that too on the intervention of a senior PDP Minister, who is learnt to have developed soft corner towards the mafia, reliable sources in Excise Department told EXCELSIOR.
By throwing to winds the Rules, the Government has issued an Order No.311-FD dated October 20, 2017 mentioning that all the liquor licenses henceforth shall be renewed for a period of five years subject to certain conditions. This order has been issued under the garb of Excise Policy 2017-18, which was notified vide SRO-157 dated March 30, 2017.
“The interesting aspect is that under Section 11 of the Excise Policy 2017-18, which deals with renewal of licenses, there is no mention of time-frame for renewal of licenses”, sources said, adding “it seems that either no time-frame was mentioned in the Excise Policy keeping in view the provision already contained in the J&K Liquor License and Sales Rules, 1984 or it was done deliberately so as to interpret the provision in such a way that it serves the interests of the liquor mafia”.
Why no such necessity was felt ever since the framing of Rules 33 years back? sources wondered, adding “the excise mafia is beating the drums publically for getting the license renewal provision modified as per their sweet will as with this unwarranted act the Government has given blanket permission to operate as per their whims and fancies for five years”.
Sources further asked, “how can the Government justify decision of renewal of licenses for a period of five years instead of every year that too under the garb of Excise Policy, which otherwise is applicable for only one year—up to March 31, 2018”, adding “a policy applicable for one year cannot take a decision whose impact would be for coming five years”.
“Had there been need of taking this decision on justifiable grounds the Government should have amended the Rules of 1984”, sources said while disclosing that liquor mafia in collusion with a PDP Minister was trying its level best to get license renewal period extended to five years from one year for the past several months and finally the Government has succumbed to their pressure.
It is pertinent to mention here that country-wide there is practice of either renewing liquor licenses after every year or ensuring e-auction after every year so as to end the monopoly and to generate sufficient revenue. However, in Jammu and Kashmir liquor license renewal period has been extended to five years instead of laying enough focus on e-auction of vends after every year, which otherwise would have generated huge resources for the State besides ensuring utmost transparency in the system.
According to the sources, the decision will also circumvent the judicial process in the case titled Sandhya Devi Versus State of J&K and Others. “The licenses under question in this case were being renewed on quarterly and half years basis and if the licenses are renewed for five years that would amount to thwarting the judicial process”, they added.

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