Only 20 of 48 liquor vends sold in fresh hiccup for Chandigarh administration

The Chandigarh administration’s plan to re-auction 48 liquor vends after cancelling their allotments fizzled out without much success, as only 20 found takers.

The auction was necessitated after the UT excise and taxation department cancelled the licences of 48 liquor vends earlier this month over non-submission of mandatory bank guarantees worth ₹40 crore.

Thereon, the winning bid quoted by the ousted successful allottees was set as the reserve price for the fresh round of auction.

However, the move boomeranged for the department, as only 20 of the 48 liquor vends up for grabs received bids.

Against a reserve price of ₹109 crore for these vends, the department raked in ₹131 crore, a 19% growth in expected revenue.

However, after the lukewarm response, the department is staring at the gaping hole in its ₹800-crore revenue target for financial year 2025-26 right at the outset.

As per a senior official, the department will consider another round of auction for the unsold 28 vends.

Vend in Sector 61 gets highest bid

The highest bid of ₹12.31 crore came for a liquor vend located in Sector 61 market, against a reserve price of ₹11.57 crore.

The second-highest bid of ₹10 crore was received for a liquor vend located at Khuda Lahora/ Khuda Jassu village against the reserve price of ₹8.27 crore. The third-highest bid of ₹9.99 crore came for a liquor vend in Sector 22-B, opposite the ISBT, which was offered with a reserve price of ₹4.96 crore.

In the first auction held on March 21, the department had managed to auction 96 of the total 97 liquor vends for 2025–26, fetching ₹606 crore in revenue — 36% above the ₹439 crore reserve price. The liquor vend in Palsora had bagged the highest bid of ₹14 crore, well above its reserve price of ₹10.22 crore.

The successful auction had triggered allegations of cartelisation by local liquor contractors, who went on to approach the Punjab and Haryana high court. They alleged that 87 out of 96 liquor vends had been allotted to just two-three individuals operating under different firms or through their relatives, associates and employees.

The high court stayed the operation of all liquor vends from April 1. The UT administration then moved the Supreme Court, which quashed the stay, clearing the way for vends to open on April 3. The matter is next listed in the high court on April 24.

However, with the excise policy under challenge before the court, combined with cancelled allotments, pending payments, technical glitches and supply chain delays, Chandigarh has been gripped by a severe liquor shortage, with shelves running dry at even the operational vends.