With the reworked excise policy for the national capital still under draft, the Delhi government on Wednesday issued an order renewing existing excise licences for hotels, clubs, and restaurants across the city for the 2026-27 financial year under the current policy framework.
A similar order for retail liquor sales is expected soon, according to officials familiar with the matter.
The extension means Delhi will continue operating under the 2020-21 policy – which has been extended under the previous Aam Aadmi Party (AAP) government and twice under the current Bharatiya Janata Party (BJP) government.
The renewal push for the excise policy ensures uninterrupted liquor supply as the current extension was set to expire March 31.
“The competent authority has granted approval for renewal and grant of new Hotel, Club and Restaurant (HCR) and Medicinal and Toilet Preparations (M&TP) licences for licencing year 2026-2027 on same terms and conditions as that of Excise year 2025-26,” read an official order issued Wednesday. Necessary circulars will be issued under Delhi Excise Rules, 2010.
The department has increased licence fees by 10% for serving liquor in independent restaurants (L-17/L-17F), serving beer in independent restaurants (L-18/L-18F), serving liquor in airport restaurants (L-19/L-19F), and serving liquor in bar/dining cars on luxury trains (L 20/L-20F) – all under the HCR category.
The order warns that if fees are further increased, licensees must pay the revised amount within stipulated time or face action including suspension of transport permits. “The department reserves the right to review the licence fee and in case the same is increased the licencee shall be liable to pay the increased amount within the stipulated time period failing which the department shall have the right to stop the transport permit of the unit or take any suitable action,” it said.
Officials familiar with the matter said similar orders are likely soon for retail liquor categories L-6 (public sector retail vend) and L-7 (private sector retail vend), with no fee hike planned for those segments.
In August last year, chief minister Rekha Gupta constituted a committee headed by cabinet minister Parvesh Verma to frame a new excise policy emphasising regulatory clarity and consumer convenience. The committee has held multiple consultations with manufacturers, wholesalers, and retailers, and reviewed liquor policies in other states.
Last year in June, the CM had said her government will soon roll out a “foolproof” excise policy that incorporates best practices from other states to enhance revenue and ensure greater transparency.
Delhi has operated under its current excise regime since September 2022, when the then AAP government’s 2021-22 policy was scrapped amid corruption allegations that led to CBI inquiries and arrests of party leaders, including former chief minister Arvind Kejriwal.
The “old excise policy” – as the current one is popularly known – has been extended repeatedly and remains valid until March 31, 2026.
A new policy has been stalled for several years – initially delayed by corruption probes, then by the 2024 Lok Sabha elections, and subsequently by early 2025 assembly elections.
The continued extensions have created supply issues, with popular Indian and international liquor brands – particularly premium whiskies, vodkas, and wines – frequently out of stock. Industry observers and consumers have urged the government to revamp the policy to match more liberal regimes in neighbouring Uttar Pradesh and Haryana, where private retail players operate and customer experience is more robust.
Currently, only government-run liquor outlets operate in Delhi. While the current policy technically allows private participation, no decision has been made until the new policy is implemented.
Delhi currently has over 700 liquor vends operated by four government agencies — the Delhi State Industrial and Infrastructure Development Corporation, Delhi Tourism and Transportation Development Corporation, Delhi State Civil Supplies Corporation and Delhi Consumers’ Cooperative Wholesale Store.