The Gurugram excise department has launched an investigation into allegations that several liquor vendors are violating pricing regulations by selling alcohol below the Minimum Retail Price (MRP). This inquiry follows numerous complaints and reports of a parallel, unregulated pricing system operating within the city. Haryana's excise policy mandates the MRP as the lowest permissible selling price for alcoholic beverages, and any sales below this price are strictly prohibited.

The violations have raised concerns about potential value-added tax (VAT) evasion and the sale of substandard or unauthorized liquor. Selling below the MRP not only distorts market competition but also suggests that appropriate taxes are not being levied or paid, resulting in losses to the state exchequer. The excise department is taking these allegations seriously and has initiated a thorough probe into the matter.

Several factors appear to be contributing to this issue. Many vendors are reportedly trying to clear out their existing stock before the new excise policy takes effect on June 12, 2025. These vendors, who may be exiting the business, are offering substantial discounts to avoid incurring losses when transferring their inventory to new license holders. Under both the current and upcoming excise policies (effective from June 12, 2025, to March 31, 2027), L-2 licensees are prohibited from offering discounts below the MRP.

Spot checks have revealed blatant violations of the MRP regulations. For example, a 750 ml bottle of VAT 69 whisky, with an MRP of ₹1,550, was reportedly sold for ₹1,000, and even as low as ₹700 for bulk purchases. At the same time, some bars have complained about being overcharged, such as being billed ₹220 for a 330 ml bottle of Corona beer, which has an MRP of ₹95 – more than double the allowed margin.

Supreme Court advocate Rajeev Yadav has been actively raising concerns with the excise department, stating that the dual pricing strategy used by these vendors is both unethical and illegal. Selling below the MRP suggests VAT evasion, while overcharging bars constitutes profiteering.

In response to the complaints, the Excise and Taxation Department has launched a full-scale investigation. Amit Bhatia, Deputy Excise and Taxation Commissioner, confirmed that the department is aware of the complaints and is currently investigating the matter.

With the new excise policy set to be implemented soon, many liquor vendors and Bring Your Own Bottle (BYOB) outlets in Gurugram have started offering significant discounts, selling alcohol below the state-mandated MRP. Most of these vendors claim they will exit the business after June 12, when the current excise year concludes. As a result, they are resorting to steep price cuts to clear their stock quickly, despite it being a violation of excise norms.

According to complaints, a bottle of Blenders Pride is being sold for Rs 400, even though its official MRP in Haryana is Rs 900. Similarly, a bottle of Glenlivet, priced at Rs 3,500, is being sold for Rs 2,800, while beer bottles marked at Rs 220 are openly sold for Rs 90. Some BYOB outlets are even organizing belly dance shows, qawwali nights, and international dance acts, with discounted alcohol being used to attract crowds. Some outlets are holding two performances a day until June 12.

One vend owner stated that they are offering heavy discounts on bulk purchases to regular customers, doing home deliveries, and using WhatsApp groups to offload stock across the NCR, as they had stocked up expecting last year's policy to continue. The new policy has raised liquor prices and license fees, forcing them to exit the market this year.

The Haryana Excise Department annually sets a minimum retail price for alcoholic beverages, prohibiting vendors from undercutting it. The current investigation aims to address these violations, ensuring fair market practices and preventing revenue loss to the state exchequer.