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Punjab approves reauction of liquor vends
P.P.S. Gill
Tribune News Service

Chandigarh, November 15
This is official: The Punjab Council of Ministers today approved the re-auction of liquor vends held on November 5 for Jalandhar-I and II, and Nawanshahr and Hoshiarpur districts for the remaining period of the year 2004-05.

This is unofficial: It is learnt there were heated exchanges between ministers and bureaucrats on the issue because the state exchequer has suffered a revenue loss of Rs 17.75 crore, which would have otherwise accrued in the remaining period of the current year.

The re-auction was done on the orders of the Supreme Court, which had directed that in case of revenue loss, the previous licencee would continue or the petitioner would make up for the loss. Thus, it had protected revenue loss to the state. Yet, despite strong opposition from several ministers, who had dubbed the approval as “criminal offence”, the council put its seal of approval on re-auction.

Insiders say that while the Chief Minister, Capt, Amarinder Singh, was supported by the Finance Minister, Mr Surinder Singla, and the Minister of Irrigation and Power, Mr Lal Singh, there was strong opposition from Mr Jagmohan Singh Kang, Mr Partap Singh Bajwa and Mr Avtar Henry. They wanted that the council should abide by the opinion given by the Finance Department. The Finance Department had commented that re-auction should not be “confirmed” and the same be “rejected” and all facts be placed before the Supreme Court for “fresh directive”.

This, however, was not the view of the Finance Minister, Mr Surinder Singla, who, sources said, wanted the council to implement the re-auction and then go to the Supreme Court. This was, interestingly, contrary to what his Principal Secretary, Finance, Mr K.R. Lakhanpal, had suggested in his comments.

The contention of the ministers opposing the approval of reauction was that the loss was caused by the Department of Excise and Taxation by lowering the bid price to Rs 75 per bottle, against Rs 102 per bottle in March 3 auction. This, Rs 27 per bottle reduction, means that in the next financial year the state would be made to again suffer a huge loss. The normal practice was that the government bid always began on the already achieved level, which was Rs 102 per bottle in March last.

It was, perhaps, due to strong opposition in the meeting that the Chief Minister, Capt, Amarinder Singh, told media persons that the government would move the Supreme Court and get “fresh directions” on who will or how will the state get compensated for Rs 17.75 crore revenue loss. Technically speaking, the council today approved the loss to the exchequer!

The Advocate-General, Mr Harbhagwan Singh and Mr Lakhanpal, were seen coming out of the meeting to discuss certain legal and technical issues involved in the reauction of the liquor shops on November 5 and why it should not be rejected.

Sources said at one stage hot words were exchanged between the Financial Commissioner, Excise and Taxation, Mr Mukul Joshi, who had presented the reauction agenda to the Council of Ministers and Mr Lakhanpal, who had refused to “confirm the reauction” as it was against the letter and spirit of the court orders. When Mr Joshi said, “You want files should open against me”, before Mr Lakhanpal spoke, the Chief Secretary, Mr J.S. Gill shot back, “This will happen, if you do what you have done”.

Insiders said the entire liquor auction process in the current year had opened a Pandora’s Box and was a fit case for a CBI inquiry, given the murky underhand dealing-wheeling!

The genesis of the re-auction discussion in the Council of Ministers today is this — reauction has turned out to be a “win-win” situation both for the petitioner, Mr Sanjeev Bhandari, who had taken the government to court over March 3 auctions but did not participate in the reauctions on November 5 and the respondents, Mr Ponty Chadha. The ‘’loser’’ is the government, which is poorer by Rs 17.75 crore.

The department insists that Mr Bhandari should pay for the entire loss. He, however, says he was not liable to pay for Jalandhar, where he did not bid and from his security deposit of Rs 6 crore, only the revenue loss of Rs 2.94 crore incurred in Nawanshahr and Hoshiarpur be deducted and the remaining sum refunded to him.

Nod to toll on new roads, bridges
Tribune News Service

Chandigarh, November 15
The Punjab Council of Ministers today approved grant of house rent allowance to the employees of the private-aided recognised schools in Patiala effective March 1, 2003, bringing these at a par with the government employees.

A press release said the council also amended the Punjab Mechanical Vehicles (Bridges and Road Tolls) Act, 1998, to enable levy and collection of toll on new road and bridge projects to be undertaken and upgraded in various modes of construction, development, operation and maintenance.

The council also approved grant of secretariat allowance to the ministerial staff at a par with secretariat allowance payable to stenography, personnel staff in the secretariat offices effective September 1, 1997.

The council approved certain amendments in the Punjab Roads and Bridges Development Board Act, 1998, through promulgation of an ordinance to enhance the functions of the board with a view of improving quality of infrastructure and works entrusted to it by the state.