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Subject:            Procedure for allotment of liquor vends by draw of lots.

 

1.          A prospective allotee shall have to apply in the prescribed application form available in the offices of Asstt. Excise and Taxation Commissioners incharge of the districts on payment of Rs.2,000/- which shall neither be refundable nor adjustable ;

2.          The Asstt. Excise and Taxation Commissioner shall authenticate the application forms, before issue, with his signature and official stamp.

3.          Application forms are also available on the web-site of the department (www.pextax.com) and could be downloaded. An applicant submitting application down-loaded through internet shall be required to pay the application fee of Rs.2000/- at the time of submitting the application in the office of the Asstt. Excise and Taxation Commissioner, district incharge.

4.          The serial number mentioned on the receipt issued by the office of Asstt. Excise and Taxation Commissioner shall be treated as number assigned to that application. In the case of those application forms downloaded from the internet, Asstt. Excise and Taxation Commissioner will allot a number to the applicant when he comes for submission of the application.

5.          The prospective allotee may apply for any number of retail licensing units provided that  he shall have to apply separately for each vend;

6.          The applicant would be required to attach Demand Draft equivalent to 5% of the license fee alongwith the application. Applications not accompanied by this fee shall be rejected. This amount would be treated as security from the successful applicant but refundable to the un-successful applicant(s).  The same would, however, be forfeited in case the successful applicant does not deposit the other dues or refuses to accept the license(s) alloted to him.

7.          A successful allotee shall be required to deposit 15% of the license fee as security, 5% of which shall be deposited alongwith the application, another 5% on the day of draw of lots and balance 5% within 3 days of draw of lots or 31st March, 2006 whichever is earlier. The remaining 85% would be recovered in nine equated monthly installments payable ,in full, by the last working day of the month ;

8.          There would be direct linkage between the issue of quota and recovery of license fee till the entire license fee is recovered. The permits of both PML and IMFL (excluding beer, wine, ready to drink beverages and IFL) would be issued after the deposit of license fee to be calculated at a rate Rs.142/- per PL.

9.          The application forms shall be serially numbered, with the serial number appearing at three places, i.e. the application form, in the slip of draw of lots, and in the receipt issued to the applicant.

10.      The application form shall be completely filled up, and shall be accompanied by two recent passport size photographs of the applicant/applicants and the requisite documents as stipucated in the application form. All the documents except the affidavit shall be attested by a Gazetted Officer with his full name, designation, place of posting, stamp and date.  The affidavit shall be furnished only by a successful allotee before operation of the license and the same shall be attested by a notary public or any authority authorized for such purposes.

11.      The verification of all the documents furnished by the successful allotee shall be made by the Excise Inspector of the concerned circle and shall be countersigned by the Excise and Taxation Officer (Excise) and AETC incharge of the district before the licence is actually granted.

12.      To ensure that a successful allotee for a licensing unit does not fall under the purview of clauses (a) and (b) of order 7 of the Punjab Intoxicants License and Sale Orders, 1956, he shall, before he starts his business, be required to file an affidavit on a non-judicial stamp paper of the value of Rs. 15/- to the effect that he has not been convicted of any  offence by a criminal court. The successful allotee shall also file an affidavit before opening of retail licensed outlets to the effect that he is not a defaulter and has paid all the arrears under any of the Acts administered by the Excise and Taxation Department, Punjab. The failure to furnish the requisite affidavit or furnishing of a false affidavit shall be sufficient ground for cancellation of license, which shall be re-alloted at his risk and cost to any other applicant.

13.      Complete record of the applications received from the prospective licensees for allotment of PML and IMFL retail outlets, separately, shall be maintained in a register, duly page numbered, and attested by the Asst. Excise & Taxation Commissioner  of the respective district, in the following manner.

            a)         Serial Number

                        b)            Application Number

            c) Name / category of the retail outlet for which the application has been made.

                        d)            The name of the applicant

 

14.      The list of the applications received, upto the last date and time fixed for such receipt, for the allotment of Licensing Units, shall be prepared Licensing-Unit-wise and shall be displayed at a prominent place in the office of the respective Asstt. Excise & Taxation Commissioners incharge of districts. 

15.      The applications shall be examined by the Excise Inspectors and the Excise and Taxation Officers (Excise). The list of valid applications and invalid applications, category-wise, shall then be prepared and displayed at a prominent place in the office of the Asstt. Excise & Taxation Commissioner before the draw of lots.

16.      The allotment of retail outlets of country liquor and IMFL (L-14A & L-2) shall be made out of those applications which are complete in all respects.  In case the number of applications for a Unit is more than one, the allotment shall be made by a draw of lots, to be conducted under the supervision of a Committee, comprising the Asstt. Excise and Taxation Commissioner incharge of the district (Chairman), the Excise and Taxation Officer(Excise) of the respective district (Member) and the concerned EI/ETI(Member). The Committee would make its recommendations to the Collector for the grant of licenses to the successful applicants of the licensing units. The Collector, on receipt of such recommendations, will approve the recommendations within two days and issue the licenses for the licensing unit(s). In the revenue districts of Ludhiana, Jalandhar and Amritsar, where Excise Districts are more than one, the Assistant Excise and Taxation Commissioner of District-I in the above-mentioned revenue districts shall be the Chairman for the draw of lots pertaining to licensing units falling within the Corporation limits. For the draw of lots pertaining to other licensing units the Chairman shall be the Assistant Excise and Taxation Commissioner of the concerned Excise district. A representative of the Deputy Commissioner of the district shall be present as Observer at the venue fixed for draw of lots.

17.      The Excise Commissioner may authorize any other officer of the Excise and Taxation Department to be the Chairman of the Committee for the draw of lots in any district in place of Assistant Excise and Taxation Commissioner, Incharge of that District.

18.      If any successful applicant fails to deposit the amount of security in time, or refuses to accept the license, his allotment shall be deemed to have been cancelled automatically, and the security deposited if any, shall be forfeited and the license may be re-allotted by draw of lots.

19.      A successful allottee shall be required to pay 15% of the license fee as security – 5% alongwith the application in the shape of earnest money; 5% on the day of draw of lots and balance 5% within three days of the draw of lots or by 31st of March whichever is earlier. After deducting the amount of 15% security, the licensee is required to pay the remaining license fee, in nine equated monthly instalments starting from the month of April. Each monthly instalment is payable by the close of the last working day of each month. In case of the late payment of any instalment, an interest @ 1.5% per month to be calculated on daily basis shall be charged in addition to the amount of penalty. The license shall be deemed to have been suspended and the vend(s) closed if the entire license fee of the month is not paid by 15th day of the next month. The license will be revoked only after the payment of the balance of instalments, interest and penalty.

20.      At the time of applying of quota for PML or IMFL, excluding beer,wine and IFL, a licensee shall be required to pay the license fee instalment @ Rs.142/- per proof litre.

21.      The security paid by the licensee shall be adjusted towards the license fee payable by him unless the same or any part thereof is forfeited or adjusted against any amount of fee or penalty due from him in respect of his license. In the event of the amount of the security or any part thereof having been forfeited or adjusted, the shortfall be made good by him within seven days, failing which the license shall be liable to be cancelled by the competent authority.

22.      No interest shall be payable to the allotee on the security amount deposited by him.

23.      In the event of cancellation of the license of a retail outlet, the Collector may re-allot it in accordance with the procedure laid down in the relevant rules under the Punjab Liquor License Rules, 1956 at the risk and cost of the licensee whose license has been cancelled.

24.      The allotment of licensing unit(s) and the draw of lots shall be done in an open and transparent manner in full public view.  A transparent jar shall be used for the draw of lots, so as to ensure that the slips that are put into the jar, are visible to the public.  

25.      The draw of lots shall not be made by any officer/official directly or indirectly connected with the process of allotment of licensing units. 

26.       Persons from the public shall be randomly called to draw the lots. 

27.       In a rural area, all the applications for a particular licensing Unit shall be put into the Jar. The applicant whose slip, is first drawn shall have the right for allotment of that licensing Unit.  The applicant whose slip is drawn thereafter shall be declared as an ‘allotee in waiting’, who shall have the claim to allotment of the respective retail outlet, in case the first allotee defaults or is debarred. In the event, of the ‘allotee in waiting’ also defaulting or getting debarred, the application for the retail outlet shall be invited afresh, and the whole process shall be repeated again.  

28.       In an urban or any other area where more than one Unit is to be allotted, all the valid applications meant for that location shall be put into the Jar. Slips shall be drawn equal in number to the number of Units one by one. Applicants, whose slips are selected, shall have the right for allotment of one of the Units. In addition to this, the slips for the ‘allotee(s) in waiting’ would also be selected in the following ratio :-

Sr. No.

No. of Units

No. of allotee(s) in waiting

Remarks

(i)

Upto 10

50%

While calculating percentage, fraction of a number shall be taken as one number.

(ii)

Beyond 10

25%

(But not less than 5)

 

 

29.      The name of the successful applicants and the ‘allotee(s) in waiting’ shall be announced then and there itself.

30.      If the number of applicants are equal to the number of Units available in a particular place, all such applicants shall be declared as allottees, subject to the approval of the concerned D.E.T.C.-cum-Collector.

31.      If at the end of the draw of lots, some Units remain un-allotted, the un-successful applicants pertaining to a particular revenue district shall be allowed to participate for allotment of such Units. For this purpose, option of such un-successful applicants would be taken on the spot and the un-allotted Units shall be allotted by following the procedure  as detailed above. For this purpose, the ‘allotee(s) in waiting’ shall also be treated as un-successful applicants.

32.      The allotment by draw of lots shall be made on the day/days fixed for this purpose.

33.      The licensee shall make his own arrangements for opening of the retail outlet, for which the department undertakes no responsibility.

34.      No license shall be granted in villages,  in respect of which a Panchayat resolution has been passed regarding closure of a liquor vend and which has been accepted by the Excise & Taxation Commissioner, Punjab.

35.      In case, at the end of the allotment proceedings, any licensing unit remains unallotted, the names and locations of such licensing units and the corresponding retail outlets, their annual license fee and annual quota shall be displayed prominently in the office of the AETC incharge of the district. 

36.      A report of such licensing units shall be made separately to the Excise & Taxation Commissioner on the next day.  Applications for such retail outlets shall then be invited again at the time and date to be notified and the procedure detailed heretofore shall be followed afresh.  

37.      Every successful allotee shall be required to furnish two sets of surety bond in form M-75 before the commencement of business.

38.      No sub-vends shall be allowed.

39.      The application forms shall be supplied by the office of the Excise and Taxation Commissioner, Punjab to the districts.  The districts shall maintain a complete account of the application forms received, issued, balance in stock and the total application fee of Rs. Two Thousand per application form received.

40.      The distilleries shall be required to make arrangement for opening and operating outlets of country liquor (L-13) in every district headquarter of the State to maintain regular and ready supply of PML to the retail vends (L‑14A).

41.      The supplies to the retail outlets of PML (L-14A)  shall be made from the wholesale outlets of PML (L-13) located in the district, on  the basis of permits/passes issued by the respective Asstt. Excise and Taxation Commissioners incharge of the district.

42.      The stock of PML brought to the wholesale vend shall be duty paid.

43.      The wholesale outlets of PML (L-13) shall maintain adequate stock of P.M.L.

44.      The annual license fee for the wholesale outlets of PML (L-13) shall be Rs. Ten Thousand per district. For this purpose the revenue district shall be treated as the unit comprising of one or more Excise districts.

45.      The distilleries shall be required to deposit a security amount of Rs.10,000/- per L-13 outlet per district, in the form of bank draft in the name of Excise and Taxation Commissioner, Punjab, for the performance of contract of supply of liquor to L-14A licensees.

46.      The licenses for the wholesale outlet of the PML (L-13) shall be granted by the Excise & Taxation Commissioner, Punjab.

47.      The distilleries shall be bound to abide by the rules and provisions laid down in the Punjab Excise Act, 1914 and rules framed there under.