The Chandigarh Administration is set to approach the Supreme Court following a Punjab and Haryana High Court order that halted the operation of all liquor vends in the city starting April 1. This decision comes in response to allegations that a single family had monopolistically secured 90% of the vends during a recent e-auction, contrary to the 2025-26 UT excise policy.
UT Administrator Gulab Chand Kataria has approved the initiation of legal proceedings to challenge the high court’s stay, with plans to file the petition on Friday. The controversy stems from the high court’s response to multiple petitions alleging unfair practices in the allotment process, where it was claimed that one family and their associates won 87 out of the 96 vends auctioned by the UT excise and taxation department.
The high court’s ruling on Wednesday means that none of the 96 liquor vends will operate until at least April 3, the date when the court is scheduled to revisit the matter. This interruption coincides with the end of the fiscal year on March 31, mandating that existing licensees cease their operations, resulting in a temporary suspension of liquor sales in Chandigarh for a three-day period.
During the court session, the UT’s legal team, led by senior advocates Rajiv Atma Ram and Amit Jhanji, defended the auction outcomes, asserting that the petitions were merely attempts by some contractors to extend their operational licenses beyond the current fiscal year. They argued that the e-auction was conducted transparently and in accordance with the stipulated excise policy.
Justice Sureshwar Thakur and Justice Vikas Suri of the high court have instructed all involved parties to maintain the status quo concerning the liquor vends for the fiscal year 2025-26 until further deliberation. This directive effectively stalls the implementation of the new excise policy scheduled to commence on April 1.
The e-auction, which took place on March 21, saw the UT administration successfully auction 96 out of 97 available liquor vends, generating significant revenue of ₹606 crore—36% above the reserve price of ₹439 crore.
