Liquor Vend Allotment Row in Chandigarh Hits Legal Roadblock

Apr 7, 2025

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Chandigarh liquor vend allotment under scrutiny as HC issues notices over alleged favoritism in contract distribution. Next hearing set for April 24.

Liquor Vend Allotment Row in Chandigarh Hits Legal Roadblock

What Happened in Chandigarh’s Liquor Vend Case?

In a major development today, the Punjab and Haryana High Court took serious note of alleged irregularities in the allotment of liquor vends in Chandigarh. Petitioners claimed that 91 out of 97 liquor shops were awarded to a single business group, raising questions of transparency and fairness.


Court’s Immediate Action

High Court Steps In

Responding to the filed petitions, the High Court has:

  • Issued notices to both the Chandigarh Administration and the alleged beneficiary business group.

  • Directed them to submit a formal reply by April 24, 2025.

  • Ordered maintenance of status quo on vend operations until the matter is heard fully.

“The court has directed all parties involved to maintain existing conditions and abstain from further action until the next hearing,” stated a legal representative familiar with the case.


Why Did Business Owners Approach the Court?

Several local entrepreneurs and former liquor contractors alleged that the recent tendering process lacked fairness. Their primary concern was that a monopoly-like situation is forming, potentially harming market competition and government revenue.


Chandigarh Administration Under Scrutiny

This case has brought the Chandigarh Excise Department under intense scrutiny. The administration had awarded liquor shop contracts on April 1, marking the beginning of the new excise year.

However, the new list reportedly excluded a large number of eligible bidders, raising further questions about the selection process.


Temporary Ban & Supreme Court Involvement

Liquor Shops Shut for 3 Days

Initially, the High Court had temporarily banned liquor shop operations in the city for three days to allow a fair legal review. In response, the Chandigarh Administration approached the Supreme Court, requesting a stay on this order.

Supreme Court Verdict

On April 4, the Supreme Court overturned the High Court’s closure order, allowing liquor shops to operate. However, it also directed the High Court to expedite the matter and ensure transparency in the hearing process.


What’s Next?

The next date of hearing is April 24, 2025, by which time all involved parties are expected to file their official responses. Legal experts believe this case could set a precedent for excise and licensing policies in union territories across India.

Legal Timeline So Far

  • April 1, 2025: New liquor vendors announced

  • April 3, 2025: High Court puts temporary hold

  • April 4, 2025: Supreme Court dismisses closure appeal

  • April 7, 2025: HC orders UT to file a reply by April 24


Conclusion: A Case of Fair Trade or Favouritism?

While the administration maintains that due process was followed, multiple stakeholders believe the process may have been manipulated to benefit select bidders. As legal proceedings unfold, the focus now shifts to the High Court’s April 24 hearing, which may determine the future of liquor distribution in Chandigarh.


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