Liquor retailers accuse Meghalaya govt of ignoring court rulings on excise margin

By Our Reporter SHILLONG, May 22: Liquor retailers in Meghalaya on Friday accused the state government of ignoring the spirit of High Court and Supreme Court rulings by reducing retailers’ profit margins under the Integrated Excise Management System (IEMS).

Addressing a press brief- ing, retailer Shamkamti Diengdoh said the gov- ernment had introduced the IEMS policy a few months ago and awarded its implementation to C-Tel Infosystem Private Limited, represented by MP Singha- nia and Company.

Diengdoh claimed that under the aforesaid policy, five per cent of the retailers’ profit margin was deducted to pay the implementing agency.

According to Diengdoh, the East Khasi Hills Wine Dealers’ Welfare Associa- tion challenged the policy before the High Court of Meghalaya through a writ petition.

He said the High Court of Meghalaya, in its judg- ment delivered on March 26, observed that while the government could in- troduce policies, it should not interfere with the 20 per cent profit margin of retailers.

He further stated that the government later ap- proached the Supreme Court through a Special Leave Petition, but with- drew the matter during the first hearing held on April 27.

Diengdoh further al- leged that despite the legal developments, the govern- ment issued a notification on May 13 revising the retailers’ profit margin to 15.5 per cent, which he claimed went against the observations made by both courts.

The retailers also ex- pressed concern over the financial impact of the re- vised policy.

Diengdoh informed re- tailers contribute revenue to the state through taxes on diesel, petrol and In- dian Made Foreign Liquor (IMFL), and alleged that reducing profit margins would affect business sus- tainability, self-employed youths and future entre- preneurs.

He further alleged that the present MDA govern- ment was favouring select- ed firms and businessmen in the award of contracts and implementation of poli- cies.

Diengdoh also claimed that the revised policy was affecting the functioning of the excise sector and creat- ing difficulties for retailers across the state.