When ON goes OFF
There is no regulation preventing bars from selling liquor at MRP, but selling at MRP makes it difficult for bars to generate revenue. They have large spaces to maintain, require more staff, and face high food costs, so selling at MRP would likely result in a loss. I don’t know how they are managing-- Official
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The city of Guwahati is witnessing an increase in liquor sales, with many new liquor shops opening and a growing number of bars gradually functioning as liquor shops. Typically, bars or "On" IMFL (India Made Foreign Liquor) shops do not sell liquor at MRP (Maximum Retail Price) from the counter, so customers buy liquor in pegs, which is more expensive. However, recently, it has been observed that many bars or "On" IMFL shops are operating as "Off" shops, selling liquor at MRP directly from the counter.
There are numerous such bars in areas like Colony Bazar, Kahilipara, Sonaiguli, Ulubari, Paltan Bazar, Lokhra, ISBT, and others. Meanwhile, when the Kamrup (Metro) district administration floated tenders for 29 liquor shops in various locations in Guwahati, the highest bid for a liquor shop was ₹1.22 crore. The bidding process for 20 liquor shops was successful, but for nine locations, the liquor shop licenses will be retendered.
Bidders who obtained the Off-shop license now feel they could have simply opened an IMFL On-shop and sold liquor from the counter, avoiding the need to spend crores on acquiring an Off-shop license. An owner of a liquor Off-shop, speaking to GPlus, stated, “Many bars are coming up in the city, selling liquor at MRP from the counter,” adding that he is unsure if this practice is legal. He mentioned that getting a bar license is less expensive and easily obtainable, but liquor Off-shop licenses in Guwahati have only been provided after many years. People had to participate in a tendering process, spending lakhs or even crores to obtain a license. If bars can sell liquor at MRP from the counter, everyone could have opted for a bar license instead.
It is important to note that the Off-shop licenses for the sale of IMFL have been provided in various areas such as Jalukbari, Dakhingaon, Maanpara (Gorchuk-Fatasil Road), Jorabat, Birkuchi, Uzanbazar, GMCH-Birubari Road, Jayanagar Road, Barsapara, Panjabari, Gotanagar, Maligaon, NB Path (Gorchuk), Patharkuchi-Basistha Road, Dhapalia, Noonmati (Nepali Chowk), Madgharia (Noonmati), Japorigog, Bakrapara, Nowa Gaon (Gorchuk), and Ganeshpara (Kalapahar).
A bar owner who sells liquor at MRP and charges a small extra fee if customers drink at the bar told GPlus, “It is not illegal to sell liquor at MRP if you have an IMFL On-shop license,” adding that an extra charge of ₹50 is levied for consuming 180 ml of liquor inside the bar. Most of the revenue is generated from selling water and food.
Bar owners are frustrated with the increased annual renewal fees for their shops or bars. Starting April 1st of this year, the annual fee for On-shops (bars) was increased based on the size of the bar. Previously, the renewal fee for bars was ₹2.5 lakh, but now bars with an area up to 1000 square feet are required to pay ₹4 lakh, those between 1000 to 2500 square feet need to pay ₹6 lakh, and bars above 2500 square feet in municipal areas must pay ₹8 lakh. In rural areas, the renewal fee has been increased from ₹1 lakh to ₹2 lakh.
With these increased fees, the cost of a peg has also risen, resulting in a decrease in the number of customers. Bars selling liquor at MRP and charging a small sitting fee offer customers the option to either purchase and carry liquor home or drink inside the bar.
A senior excise official from the Excise Department, speaking to GPlus, said, “There is no regulation preventing bars from selling liquor at MRP, but selling at MRP makes it difficult for bars to generate revenue. They have large spaces to maintain, require more staff, and face high food costs, so selling at MRP would likely result in a loss. I don’t know how they are managing.”
The official further stated that while bars can sell liquor at MRP, they must maintain the premises according to the license norms, ensuring that facilities such as toilets and smoking zones are provided. However, many bars operating as liquor shops lack proper amenities, and the Excise Department rarely inspects the situation.
