New Excise Policy: Govt to audit benami ownership of all licenses

Sanjeev Pargal
JAMMU, Mar 31: The Finance Department today announced new Excise Policy with a view to come down heavily on benami ownership of all existing liquor licenses even as it decided to go for fresh auction of 61 existing licenses, give new licenses in un-served and underserved areas and brought bars in hotels, restaurants etc under the Court judgments, which barred grant of licenses on National and State Highways.
“The Department of Excise will undertake fresh survey of all existing licenses and conduct forensic audit if required to detect any benami ownership, ownership procured in violation of the provisions of Jammu and Kashmir Excise Act, Liquor License and Rules, 1984 and circular instructions issued from time to time,” the Excise Policy announced by the Finance Department today said.
To detect benami ownership of liquor licenses, the Finance Department has also instituted mechanism of PAN and Aadhaar seeding of licenses and ensure their compliance and functioning strictly in accordance with provisions of the Excise Act.
“The present policy for the grant of licenses for retail sale of liquor, bar with hotel, banquet, restaurant, cinema theatre, Dak Bungalow, Unit Run Canteen by Army and para-military forces, Master Canteen and Club, will continue subject to fulfillment of the requirements of orders of the Supreme Court and High Court on the subject,” the new Excise Policy said.
The Government annou-nced that to arrest bootlegging, illicit distillation of liquor and ensure availability of safe drinks, the Excise Department will grant new licenses in un-served and under-served areas.
It said for determining un-served and under-served areas, Tehsil will be the basic unit in the rural areas and Municipal Wards in the urban areas.
The new licenses will be granted through e-auction mode subject to other conditions fulfilled by the eligible highest bidder. The new license will be valid for a period of five years and the bid would include premium over and above the annual license fee to be paid by the highest bidder, as determined by the Excise Department from time to time. The Department would come out with detailed conditions and modus operandi for e-auction separately.
The new Policy made it clear that new liquor vends should be at a minimum distance of 100 meters from the religious places, schools, hospitals, nearest liquor shops and in conformity with provisions of Jammu and Kashmir Excise Act and Liquor License and Sale Rules.
“For the purpose of granting new licenses, all 61 locations in the case titled Sandhya Devi versus Others versus State of J&K and others, will be treated as available for granting new licenses except the locations falling within 500 meters of National and State Highways as per the directions of the Supreme Court. The process of granting new licenses on these locations will also be through e-auction, supplemented by Technical and Financial Bid,” the Excise Policy said.
The 61 licenses had been granted through computerized draw, which the Vigilance Organization had held as manipulated.
As per the new Policy, in the process of e-auction, if an eligible bidder has bid for more than one location, the license will be given to the highest eligible bidder for only one location of his choice. For other locations in this case, the next highest bidder will be allowed to match the highest bid and license will be given accordingly. However, if this doesn’t materialize, such locations will again be put to auction.
“Those already having any manufacturing, bottling, brewery, wholesale or retail license will not be eligible to apply for any new license, which will be granted to state subjects only,” the Policy stated.
The existing Policy for issuance of licenses for distilleries, breweries and bottling plants in the State will continue.
Similarly, the Maximum Retail Price (MRP) of all types of liquor including JK Special Whisky and Beer will continue to be fixed by the Excise Commissioner for the year 2017-18. Freight charges will be added to MRP at the rate of 5 per cent for Kashmir division, Poonch and Kishtwar districts of Jammu division and 10 per cent for Leh and Kargil districts.
Up to two liters of imported duty free liquor accompanied with proper invoice shall be allowed to be carried into the State by any bonafide person.
The Finance Department, however, maintained that long term objective of the State is to eliminate or reduce consumption of liquor primarily through educating the masses regarding harmful effect of its consumption. In this connection, the Department will educate people through awareness campaigns, engagement with local youth and communities and drug de-addiction programmes. The Department will exhort all stakeholders, in particular all licensees to contribute a minimum of 2 per cent of their annual profit towards Corporate Social Responsibility Fund established by the Department, which will also contribute matching amount.