Deferring of liquor auction process may cost dear to state

ALLAHABAD: In absence of a detailed order from the Election Commission and just a two-liner fax, deferring the liquor auction process, citing the model code of conduct as the reason, the authorities of the state excise department face an herculean task of achieving a whopping target of around Rs 6,000 crore through auction of liquor outlets.
Even though there is much more than meets the eye in dispatch of the fax at the eleventh hour, efforts are on to convince the Election Commission about the need of going ahead with the auction.None of the officials are willing to come on record to comment on the reason behind the EC move.
Sources stated that state excise commissioner Sudhir Bopde is camping in Lucknow and has held talks with the authorities before sending a renewed request, seeking clearance for the auction as it would have an adverse impact upon the revenue generation of the state government, besides proving to be a golden opportunity for liquor mafia and black-marketeers.
The order for deferring the auction also smacks of a conspiracy in view of the fact that a similar situation had arisen during the assembly elections two years back, but the EC did not object to the liquor auction as it was seen as a routine annual practice.
Pointedly, the exercise of auctioning of Indian Made Foreign Liquor (IMFL) and country made liquor shops was already underway and two phases covering around 34 districts had been completed on March 2 (first phase, 12 districts) and March 9 (second phase, 22 districts).
The Election Commission's order came as a bolt from the blue for the department as the state excise department planned to carry out the final phase on March 18 which would have covered the remaining districts of the state including, Allahabad, Varanasi and others.
Now, with the electoral process coming to an end on May 22, there is no way the department can proceed with the auction, thereby leaving it in a catch-22 situation as the allottees in the initial two phases have already deposited the amount for one year in the state coffers.
The allottees too are at their wits end in trying to figure out an amicable solution to the vexed problem as in event of the auction being postponed till the end of the elections, they would be losing out on revenue which otherwise would have been generated from April 1, 2009 onwards, when the new allottees are handed over the shops. They have threatened to move the court if a remedy is not evolved soon.
The flip side of the issue would be that Bacchus lovers would be left to fend for themselves as the licence would stand cancelled on the last day of the financial year on March 31, 2009. At this juncture, black-marketers and hoarders would have a field day, selling liquor at a premium.
Rajesh, a manager of a distillery, who is in touch with excise authorities, felt that the Election Commission could consider granting an extension to the existing allottees. But in that case, the fresh allottees would not bid for a 12-month auction and instead deposit the money for only 10 months, which in turn would result in revenue loss to the state government. Another option with the Election Commission is to let the present allottees continue.