The BJP-led government in Delhi has extended the current liquor policy till March 2026, marking the fifth extension since the Aam Aadmi Party’s (AAP) 2021-22 excise policy was scrapped following corruption allegations. The latest extension means the capital will continue to operate under the 2020-21 policy.

A June 27 order from the excise department confirmed that wholesale (L-1, L-1F), retail (L-2), and hotel, club, and restaurant licenses would be renewed on existing terms upon payment of applicable fees. The extension will cover the excise year from July 1, 2025, to March 31, 2026.

Over 50% of Delhi’s hotels, clubs, and restaurants applied for renewals within 24 hours of the department’s circular, with around 40% of the 713 government-run retail liquor stores also applying. Delhi has about 1,000 licensees in the HCR (hotels, clubs, restaurants) category.

Chief Minister Rekha Gupta has directed officials to prepare a new excise policy that balances revenue generation with transparency. A high-level committee led by Chief Secretary Dharmendra Kumar is currently reviewing models from other states.

According to the excise commissioner’s notice, there will be no change in price structure, label, source, or warehouse for existing licenses and registered brands. Renewals for 2025-26 will follow the same terms as 2024-25.

The current excise policy, referred to as the old policy has been in effect since September 2022. It replaced the AAP government’s reformative 2021-22 policy, which was scrapped after the Lieutenant Governor recommended a CBI probe into alleged irregularities.

Despite uncertainty over long-term reforms, Delhi’s excise revenue rose 13% in the first three quarters of FY 2024-25. The government collected ₹4,233 crore in excise duty between April and December 2024, compared to ₹3,718 crore during the same period in 2023-24. The full-year target for 2024-25 is ₹6,400 crore.