The Delhi High Court has decided that a liquor vending licence issued under the Delhi Excise Act, 2009, cannot be revoked based on public opinion or sentiment about the location of the vending machine.
The decision by Justice Yashwant Varma supporting the Financial Commissioner's order of reinstating a restaurant's licence in June 2019, came after the Department of Excise filed an appeal.
Soon after the new liquor policy came into operation in November 2021, a number of petitions filed by residents and licence holders in connection with conflicts over liquor vending sites reached the court. Protests were also conducted against the location of alcohol vending machines. However, this case dates back to 2018.
The department of excise cancelled 2 Bandits Restaurant's excise licence in January 2018 due to concerns about disruption of law and order and public opinion. The Financial Commissioner overturned the appeal order in June 2019, and the restaurant's licence was reinstated.?
The Department of Excise opposed the reinstatement in the Delhi High Court last month, claiming that the Delhi Excise Act gives them broad authority to revoke a licence for any cause.
The excise department's appeal was dismissed by Justice Yashwant Varma, who highlighted that the Act's issuance of licences and rules enacted under it are not susceptible to "public sentiment."
“Unless the licence of the liquor vend is shown to fall foul of any statutory provision or otherwise established to be in violation of any rule or regulation, the same cannot possibly merit cancellation merely because “public sentiment” may be opposed to its location. Public opinion or sentiment is not a factor relevant or germane under the Act for locating a liquor vend,” said the bench.
It further stated that the perception of a law and order problem is clearly a different issue that must be handled by law enforcement officials. On the first day of the hearing, the court dismissed the Department of Excise's petition.
No retail vending machine can be located within 100 metres of major educational institutions, religious places, or hospitals with 50 beds or more, according to Rule 51 of the Delhi Excise Rules, 2010.?
In the case of consumption "on the premises" or any premises that were not licensed in the previous year, the Deputy Commissioner is required, under Rule 24, to take all reasonable steps to obtain the opinion of persons who live or own property in the area and are likely to be affected by the proposal before granting a licence.
Retail vends can be opened in any of the markets, malls, commercial roads/areas, local shopping complexes, and other similar locations, according to the Delhi Excise Policy 2021-22, as long as the standard rules and regulations for opening a new vend are followed, particularly Rule 51 of the Delhi Excise Rules.
The ruling is significant in light of the controversy that develops every time a liquor store opens in a new location, particularly in a residential area. Residents complained to the court after the Delhi government's excise policy went into effect last year and new vends opened for the first time in particular areas, claiming the vends were in residential areas or near holy places or schools. Some licensees also went to court, claiming that they were not authorised to open their vending machines because of the public.
Liquor businesses attract negative characters who may quarrel with residents, which is a frequent complaint of residents' welfare societies. In other instances, it was also stated that women and children visited the market or other location where the liquor vending machine was set up.
Recently the High Court also ordered the Excise Commissioner and the Delhi Police Commissioner to form a consultative group to look into the feasibility of extending the operating hours of public entertainment venues until 3 a.m. The National Restaurant Association of India had filed a petition for the same asking the Delhi Police to refrain from interfering with the operation and running of restaurants and bars until 3 a.m.
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