Chandigarh Liquor Vend E-Auction: Palsora Site Secures Top Bid for Second Year
The Chandigarh Excise and Taxation Department has successfully concluded the first e-auction for liquor vends under the Excise Policy 2025-26, with the Palsora village site emerging as the highest bidder for the second consecutive year. The auction, held on Thursday, March 20, 2026, generated significant revenue and highlighted the department's efforts to enhance transparency through digital initiatives.
Record-Breaking Bids and Revenue Generation
At the e-auction, a liquor vend located in Palsora village, bordering Mohali, received the highest bid of Rs 16.71 crore, surpassing its reserve price of Rs 11.41 crore. This marks a notable increase from last year, when the same vend was auctioned for Rs 14 crore against a reserve price of Rs 10.22 crore. The department auctioned 83 out of 97 available liquor vends, earning a total of Rs 496.81 crore in licence fees, which represents an approximate 29% increase over the reserve price of Rs 385.24 crore. Additionally, Rs 3.90 crore was collected as participation fees.
Comparative Analysis and Other High Bids
While the Palsora vend led the auction, other notable bids included the second highest of Rs 12.27 crore for a vend in Dhanas, against a reserve price of Rs 9.62 crore, and the third highest of Rs 11.52 crore for a vend in Sector 61, with a reserve price of Rs 8.21 crore. In comparison, last year's auction saw the department collect Rs 606.43 crore in licence fees and Rs 4.56 crore as participation fees from 96 vends, indicating a shift in revenue patterns this fiscal year.
Allegations and Policy Implementation
Darshan Singh Kler, president of the Wine Contractors Association Chandigarh, raised concerns regarding the auction process. In a communication to the Excise and Taxation Commissioner, Kler alleged that some bidders were allowed to submit documents physically after the deadline and failed to disclose relationships with other bidders as required under Clause 14 of the Excise Policy. Despite these allegations, the department has initiated the tendering process for the remaining 14 liquor vends.
Key Features of the New Excise Policy
The new Excise Policy aims to promote transparency and increase revenue through technological adoption. Key features include:
- Re-introduction of liquor licences for departmental stores.
- Procurement of liquor by bar licensees from the two nearest vends.
- Increased security deposits for retail vends.
- Mandatory GPS systems for liquor transportation.
To facilitate e-tendering, all stakeholders received training on digital signatures and software developed by the National Informatics Centre (NIC). The policy also seeks to curb cartelisation and monopoly by limiting allotments to a maximum of 10 licensing units per entity, ensuring a level playing field while boosting departmental revenue.
Conclusion and Future Outlook
The e-auction underscores Chandigarh's commitment to modernising its excise operations and maximising revenue through competitive bidding. With the Palsora vend continuing to attract top bids and the department implementing stringent measures to prevent malpractices, the Excise Policy 2025-26 is poised to set new benchmarks in the region's liquor trade. As the tendering for remaining vends progresses, stakeholders will closely monitor adherence to policy guidelines and the overall impact on market dynamics.
