Chandigarh, April 22: Chandigarh’s attempt to re-auction 48 liquor vends after cancelling their allotments earlier this month has met with disappointing results, with only 20 of the vends attracting bids.
The auction followed the cancellation of licenses for 48 liquor vends by the UT excise and taxation department. This action stemmed from the failure of the allottees to submit mandatory bank guarantees totaling ₹40 crore.
The department set the winning bids of the previous auction as the reserve prices for the new round.
However, the re-auction struggled to gain traction, with bids for only 20 of the 48 vends. The department had set a reserve price of ₹109 crore but ultimately collected ₹131 crore, marking a 19% increase over the expected revenue.
Despite this, the lukewarm response has left a significant gap in the ₹800-crore revenue target for the financial year 2025-26.
A senior official indicated that the department is considering another auction for the 28 unsold vends. “We are looking into scheduling another round for the remaining vends,” the official said.
Among the 20 vends that did receive bids, the highest bid of ₹12.31 crore came from a vend in Sector 61, surpassing its reserve price of ₹11.57 crore.
The second-highest bid of ₹10 crore was for a vend in Khuda Lahora/Khuda Jassu village, while the third-highest bid of ₹9.99 crore came from a vend in Sector 22-B, opposite the ISBT.
In March, a prior auction saw a more successful outcome, with 96 out of 97 vends sold, generating ₹606 crore—36% above the expected ₹439 crore.
The highest bid in that round was ₹14 crore for the Palsora vend, which far exceeded its reserve price of ₹10.22 crore.
However, the previous auction has not been without controversy. Allegations of cartelization surfaced after liquor contractors claimed that two to three individuals, operating under different names, secured 87 of the 96 vends.
These contractors petitioned the Punjab and Haryana High Court, alleging unfair allotments. The court stayed the operation of all liquor vends from April 1, but the Supreme Court later lifted the stay, allowing vends to open on April 3. The case is set to return to the High Court on April 24.
Meanwhile, the city’s liquor supply remains in jeopardy.
With the excise policy under legal scrutiny, combined with the cancelled allotments, unpaid dues, and ongoing technical issues, Chandigarh is facing a serious liquor shortage. Shelves at operational vends are running dry, further exacerbating the situation.
