With jump of 29% over reserve price, Chandigarh’s earns nearly Rs 500 cr in 1st round of liquor auction

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3 min readChandigarhMar 20, 2026 08:11 AM ISTTo discourage cartelisation and monopolistic control, the policy caps the allocation at a maximum of 10 licensing units per individual or entity. (File Photo)For the second consecutive year, the liquor vend at Palsora village on the Mohali border has emerged as the highest-grossing unit in Chandigarh’s excise auction, drawing a winning bid of Rs 16.71 crore against a reserve price of Rs 11.41 crore. In the previous excise cycle, the same vend had also led the chart with a bid of Rs 14 crore over a base price of Rs 10.22 crore.The first round of e-auction under the Excise Policy 2025-2026 saw participation from several, with 195 bids submitted online for 84 vends out of a total of 97. However, one bidder was disqualified during technical scrutiny, leaving 83 vends effectively in contention. The combined reserve price for these stood at Rs 385.24 crore.The Excise and Taxation Department reported a total collection of Rs 496.81 crore in licence fees from the first round, reflecting an increase of nearly 29 per cent over the reserve price. Additionally, Rs 3.90 crore was generated through participation fees. In comparison, last year’s auction had yielded Rs 606.43 crore in licence fees and Rs 4.56 crore in participation charges for 96 vends.The second-highest bid of Rs 12.27 crore was recorded for a vend in Dhanas against a reserve price of Rs 9.62 crore. A Sector-61 vend secured the third spot, fetching Rs 11.52 crore compared to its base price of Rs 8.21 crore.The department has initiated the tendering process for the remaining 14 vends. Officials expressed confidence that, given the strong response so far, the remaining units will also attract competitive bids, pushing overall revenues well beyond the baseline targets.UT authorities attributed the encouraging outcome to reforms introduced in the new excise policy, which emphasises transparency and technology-driven processes. The entire auction was conducted online, with bidders trained in the use of digital signatures and specialised software developed by the National Informatics Centre (NIC). No offline submissions were entertained.To discourage cartelisation and monopolistic control, the policy caps the allocation at a maximum of 10 licensing units per individual or entity.Story continues below this adUT officials said this move is intended to ensure fair competition while boosting revenue.Other key provisions include the reintroduction of liquor sales through departmental stores, allowing bar licensees to procure stock from nearby vends, an increased security deposit for retail outlets, and mandatory GPS tracking for liquor transportation.Meanwhile, Darshan Singh Kler, president of the Wine Contractors Association, has raised objections regarding the bidding process. In a written complaint to the Excise and Taxation Commissioner, he alleged that certain bidders were allowed to submit documents after the stipulated deadline. He also claimed that some participants failed to disclose business associations with other bidders, as required under the policy guidelines.The department is yet to respond to these allegations.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt Ltd