Delhi’s draft excise policy sent to Centre, government retail model to continue

The Delhi government has sent its draft excise policy to the Union government for approval after Chief Minister Rekha Gupta and a ministerial committee cleared the proposal, officials aware of the matter said on Thursday.

The policy is expected to complete the remaining approval process and could be implemented in October, ahead of Diwali, they said.

The proposed framework is aimed at replacing the existing excise regime and introducing changes in liquor retail, brand availability and the functioning of outlets in the national capital.

Government corporations likely to retain retail control

Private companies are not expected to return to Delhi’s liquor retail market under the proposed policy. Instead, the government-run retail model is likely to continue.

Four government corporations currently operate more than 700 liquor outlets across the Capital. Their number could increase under the new framework, according to officials.

“There are several changes proposed that will help increase availability of better and more brands in Delhi while breaking any kind of monopoly. The retail stores will remain operated by government corporations, though their numbers may increase. However, it will not be open to private players,” a government official said.

The policy is also expected to change the functioning of liquor outlets and improve the availability of premium brands. The government is examining provisions concerning the sale and serving of liquor at hotels, clubs and restaurants.

Excise duty and retail margins may be revised

Separate reports on the draft have indicated that the government is considering changes to excise duty and retail margins as part of the new framework. The reported proposals are aimed at increasing government revenue and making it more viable for government-run outlets to stock a wider range of premium and imported brands.

Delhi’s excise revenue target for 2026-27 has been set at ₹7,200 crore, compared with around ₹7,148 crore collected in 2025-26, according to officials cited in June. The department had also reported around ₹1,038 crore in revenue during the June quarter of 2026, a 17% increase from ₹885 crore in the corresponding period a year earlier.

The exact provisions of the new policy will depend on the final approvals and notification.

Policy follows four-year gap after 2021-22 controversy

The new policy comes four years after the Delhi Excise Policy 2021-22 was withdrawn in 2022 amid allegations of procedural irregularities and corruption. The Central Bureau of Investigation and Enforcement Directorate subsequently investigated the matter.

A Delhi court in February 2026 discharged former Chief Minister Arvind Kejriwal, former Deputy Chief Minister Manish Sisodia and other accused in the CBI case, refusing to take cognisance of the chargesheet. The CBI subsequently moved the Delhi High Court against the decision, while proceedings connected with the wider matter continue.

The earlier 2021-22 policy had shifted liquor retail away from government corporations and allowed private entities to operate wholesale and retail businesses. The government later reverted to the earlier government-run retail system. A Delhi Assembly committee document records that the 2021-22 policy was implemented in November 2021 and extended until August 2022.

Parvesh Verma committee framed new policy

Gupta had constituted a ministerial committee headed by Parvesh Verma last year to formulate a new excise policy. The committee was tasked with preparing a framework focused on transparency, regulation and social safeguards.

The Delhi government has been working on the policy as part of efforts to replace the existing regime and regulate liquor retail in the Capital.

The current government-run system has continued through extensions of the previous framework. In September, the Delhi Excise Department said the government was stepping up enforcement against illegal liquor trade, with 725 FIRs registered and 730 people arrested between April and August 2026. The department also reported the seizure of around 2.2 lakh liquor bottles and 197 vehicles during the period.

The new policy is now awaiting the remaining approvals before it can be formally notified and implemented.