The old excise regime in Delhi, which was reintroduced last year, is expected to be extended beyond its current expiry date of September 30. Sources have indicated that the Delhi government has not yet announced a new excise policy to replace the existing one.
The previous excise policy was reinstated after the new policy faced scrutiny, ultimately leading to a recommendation for a CBI probe by Lieutenant Governor V K Saxena in July 2022, due to alleged irregularities in its implementation.
Originally implemented as a temporary measure on September 1, 2022, the existing excise policy was meant to serve as a stopgap solution until the Delhi government devised and enacted a new policy. Its initial expiration date was set for March 31, but the Delhi government extended it by six months to September 30.
However, concerns have arisen among excise license holders in the hotel, club, and restaurant (HCR) category regarding the renewal of their permits. Manpreet Singh, treasurer of the National Restaurant Association (NRAI), noted that police verification is required for the renewal of these licenses.
Singh expressed apprehension that the renewal of excise licenses by the September 30 deadline may be affected due to issues related to police verification. According to him, the police are currently not accepting applications for verification from individuals, stating that they can only process verifications through a government agency or department. Additionally, the police have conveyed their inability to complete a large number of verifications within the short time frame available.
Despite these concerns, Singh mentioned that the Excise Department has provided assurance that there will be no hindrance to the renewal of HCR category licenses due to police verification. Department officials have reportedly stated that they will resolve the issue of police verification at the departmental level and issue further instructions.
As of now, there has been no immediate response from the Delhi Police or the Delhi government’s Excise Department regarding this matter.
In August, the Excise Department had made it mandatory for proprietors and firm partners operating hotels, clubs, and restaurants with bars in Delhi to submit police verification certificates. This measure was intended to ensure that individuals holding excise licenses had good moral character and did not possess any criminal record.
Delhi has over 970 HCR category licensees, with around 400 of them having sought police verification, as indicated by bar owners. While character verification for the primary applicant seeking an HCR category license is conducted by the Delhi Police, the Excise Department had sought verification for all directors and partners in cases of joint ownership where licenses were issued by the department.
The sources mentioned that the police may face challenges in verifying the backgrounds of such a large number of individuals within the given deadline, despite having a dedicated branch for this purpose.