Garv Malhotra vs State Of Uttarakhand & Others on 6 August, 2026

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    Uttarakhand High Court

    Garv Malhotra vs State Of Uttarakhand & Others on 6 August, 2026

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                                                                             Reserved
    
                 IN THE HIGH COURT OF UTTARAKHAND
    
                                    AT NAINITAL
    
             HON'BLE THE CHIEF JUSTICE MR. MANOJ KUMAR GUPTA
                                        AND
                     HON'BLE SRI JUSTICE SUBHASH UPADHYAY
                      WRIT PETITION (M/B) NO. 395 OF 2026
    
    Garv Malhotra                                                .....Petitioner.
                                       Versus
    
    State of Uttarakhand & others                                ....Respondents.
    
                                          With
    
                      WRIT PETITION (M/B) NO. 404 OF 2026
    
    Megha Malhotra                                               .....Petitioner.
                                       Versus
    
    State of Uttarakhand & others                                ....Respondents.
    
    Counsel for the Petitioner(s)        :       Mr. U.K. Uniyal, learned Senior
                                                 Counsel assisted by Mr. Sandeep
                                                 Kothari and Mr. Mohd. Suhail,
                                                 learned counsel.
    Counsel for the State                :       Mr.      S.N.    Babulkar,      learned
                                                 Advocate General assisted by Mr.
                                                 Amarendra       Pratap     Singh,    Mr.
                                                 Ganesh          Kandpal,        learned
                                                 Additional Advocate General, Mr.
                                                 Rajeev     Singh      Bisht,    learned
                                                 Deputy     Advocate      General,    Mr.
                                                 J.S. Bisht and Mr. B.P.S. Mer,
                                                 learned Standing Counsel.
    Counsel for Respondent No.5          :       Mr. Amit Anand Tiwari, learned
                                                 Senior     Counsel    through       video
                                                 conferencing      assisted     by    Mr.
                                                 Vikas Bahuguna, learned counsel.
    
                                        Judgment Reserved on: 20.07.2026
                                       Judgment Delivered on: 06.08.2026
    
    
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                                                  A.F.R. (Approved for Reporting)
    
    The Court made the following:
    
    JUDGMENT:

    (per Hon’ble The Chief Justice Mr. Manoj Kumar Gupta)

    1. The present writ petitions have been filed by the

    SPONSORED

    petitioners invoking the extra ordinary jurisdiction of this

    Court under Article 226 of the Constitution of India questing

    the legality of the decision dated 17.02.2026 taken by the

    Excise Commissioner, Uttarakhand whereby three Indian

    Made Foreign Liquor (for short hereinafter referred to as

    “IMFL”) shops in District Dehradun, including the shops in

    dispute situated at Dalanwala, Parade Ground, Dehradun and

    Rajpur Road (near RTO), Dehradun were directed to be

    settled by inviting offers based on highest revenue. The

    challenge has also been laid to the consequential proceedings

    culminating in allotment of the said shops in favour of

    respondent no.5. The petitioners further seek a direction for

    consideration of their respective claims for renewal of licenses

    in accordance with the Excise Policy.

    2. The facts of both the cases are almost similar. For

    convenience of discussion, the facts from Writ Petition (M/B)

    No.395 of 2026 are being noted.

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    3. The State Government promulgated the

    Uttarakhand Excise Policy, 2025 by Government Order dated

    05.03.2025. It regulates the settlement of retail liquor shops

    in the financial years 2025-26, 2026-27 and 2027-28. The

    policy prescribed the manner in which existing licenses were

    to be renewed and, in the event of failure of renewal, the

    procedure to be followed for settlement of such shops.

    4. The petitioner along with proforma respondent no.6

    was the licensee of the IMFL shop at Rajpur Road (near RTO),

    Dehradun for the financial year 2025-26. Under the Policy,

    the existing licensees, who fulfilled the prescribed conditions,

    were entitled to seek renewal on payment of enhanced

    annual revenue fixed by the State. The enhanced annual

    revenue prescribed for renewal of shops for the financial year

    2026-27 stood enhanced by approximately 4% over the

    preceding year.

    5. In order to operationalise the process of renewal

    and settlement of liquor vends in the State, the Excise

    Commissioner issued detailed Guidelines dated 03.02.2026

    prescribing the procedure for renewal as well as settlement of

    shops remaining unsettled after renewal. Applications for

    renewal were required to be submitted between 12.02.2026

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    and 16.02.2026. The case of the petitioner is that he

    submitted the renewal application in the office of the District

    Excise Officer on 16.02.2026, but he was not issued any

    acknowledgement despite repeated requests. Therefore, on

    the very next day, i.e. 17.02.2026, he sent e-mail to the

    Principal Secretary, Excise, with copies thereof to the District

    Magistrate, District Excise Officer and the Excise

    Commissioner stating that he had duly submitted his renewal

    application on 16.02.2026, but no receipt had been issued to

    him. He also made prayer for renewing his license.

    6. The State- respondents deny receipt of any renewal

    application from the petitioner. According to them, on the

    expiry of the last date, the District Excise Officer examined all

    renewal applications received in District Dehradun and found

    that applications had not been received in respect of the

    three shops, namely, Rajpur Road (near RTO), Dalanwala

    (parade ground), and GMS Road.

    7. The District Excise Officer accordingly submitted a

    report dated 17.02.2026 to the Excise Commissioner

    informing her that these three shops had remained un-

    renewed. By another report, submitted on the same day, it

    was suggested that these shops possess the potential of

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    fetching revenues substantially higher than the prescribed

    annual revenue and, therefore, instead of following the

    normal procedure, they may be settled by inviting maximum

    offers.

    8. The suggestion regarding the possibility of fetching

    higher revenue was made on basis of certain proposals

    received from existing licenses and other persons, the value

    of which, as stated in the report, are as follows:-

    Sl. Name of Prescribed Value of Prescribed Value of
    No. IMFL Revenue for offer Revenue for offer
    Shop Financial received Financial received
    Year 2026- Year 2027-
    27 28

    1. Rajpur 8,69,84,820 9,00,70,000 9,04,64,213 9,30,14,000
    Road
    (near
    R.T.O.)

    2. Dalanwala 9,57,08,343 10,00,90,000 9,95,36,677 10,20,60,000
    (Parade
    Ground)

    3. G.M.S. 12,70,33,668 13,00,60,000 13,21,15,015 13,40,18,000
    Road

    9. The names of the persons from whom higher offers

    were allegedly received have not been mentioned. It is

    relevant to note here that as per clause 12 of the General

    Instructions, any offer received from any person is required

    to be entered in the proposal receipt register. However, the

    offers on basis of which, the aforesaid recommendation was

    made, do not find any mention in the proposal receipt

    register. On the very same date, i.e. 17.02.2026, the Excise

    Commissioner accepted the recommendation and directed
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    that the aforesaid three shops be settled by inviting

    maximum offers. The order records that such decision was

    taken in exercise of power under Rule 42 of the Excise Policy

    in the interest of securing maximum revenue for the State.

    10. Pursuant thereto, a notice dated 18.02.2026 is

    stated to have been issued from the office of the Excise

    Commissioner. The respondents describe the said notice as a

    public advertisement inviting offers. It is as follows:-

    “कायार्लय आबकारी आयु�, उ�राखण्ड, देहरादून।
    संख्या: 23928/ सात लाई०-48/आबकारी नीित-2025/देहरादून �दनांकः फरवरी, 18
    2026
    :िवज्ञि�:

    सवर्साधारण को सूिचत �कया जाता है �क िव�ीय वषर् 2026-27 व 2027-28
    (ि�वष�य) हेतु फु टकर म�दरा दुकान� के �वस्थापन हेतु उ�राखण्ड आबकारी नीित
    िवषयक िनयमावली, 2025 (ि�वष�य) के अन्तगर्त ���या गितमान है। इच्छु क एवं आहर्
    आवेदक सम्बिन्धत जनपद के कायार्लय िजला आबकारी अिधकारी एवं िवभागीय वेवसाईट
    www.uttrakhandexcise.org.in तथा www.uk.gov.in पर �वस्थापन से सम्बिन्धत
    जानकारी �ा� क� जा सकती है। म�दरा दुकान� के �वस्थापन से सम्बिन्धत समय-समय पर
    जारी िनद�श उपरो� वेवसाईट पर उपलब्ध है।

    (अनुराधा पाल)
    आबकारी आयु�,
    उ�राखण्ड ।

    संख्या: 23929-33/ सात लाई०-48/आबकारी नीित-2025 / देहरादूनः त�द�नांक ।
    �ितिलिपः िन�िलिखत को सूचनाथर् एवं आवश्यक कायर्वाही हेतु �ेिषत।

    1. �मुख सिचव, आबकारी उ�राखण्ड शासन।

    2. समस्त िजलािधकारी, उ�राखण्ड।

    3. समस्त अपर/संयु�/उप आबकारी आयु�, उ�राखण्ड।

    4. समस्त िजला आबकारी अिधकारी, उ�राखण्ड।

    5. िहन्दी दैिनक समाचार प� अमर उजाला, रा�ीय सहारा, दैिनक जागरण, �हंदस्ु तान,
    उ�र उजाला, पंजाब के सरी व अं�ेजी दैिनक द पायिनयर को इस आशय के साथ �ेिषत �क
    उ�राखंड �ादेिशक संस्करण म� �दनांक 19.02.2026 को न्यूनतम स्थान म� �कािशत करते
    �ए भुगतान हेतु िबल कायार्लय आबकारी आयु� उ�राखंड को �ेिषत करने का क� कर� ।

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    (अनुराधा पाल)
    आबकारी आयु�,
    उ�राखण्ड ।”

    11. According to the respondents, the said notice was

    also published in two newspapers, namely, Dainik Jagran and

    Hindustan dated 19.02.2026.

    12. It is noteworthy that the said publication does not

    indicate the names of the shops proposed to be settled, nor

    reserved license fees nor the minimum guaranteed revenue.

    It did not prescribe the eligibility conditions, the mode of

    publication, the authority before whom applications were to

    be submitted, or the last date for submission thereof.

    13. According to the respondents, notwithstanding the

    aforesaid shortcomings in the notice, four offers were

    received for the shop at Rajpur Road, (near RTO), four for the

    shop at Dalanwala, (parade ground) and three for the shop at

    GMS road. The District Excise Officer forwarded the offers to

    the Excise Commissioner vide his letter dated 23.02.2026.

    On 25.02.2026, the Excise Commissioner approved

    settlement of three shops in favour of person offering the

    highest annual revenue.

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    14. Consequently, the shop in question came to be

    allotted in favour of respondent no.5. Aggrieved thereby, the

    petitioner approached this Court.

    15. The principal challenge in the writ petition is on the

    ground that the respondents have completely bypassed the

    mandatory procedure prescribed under the Excise Policy.

    According to the petitioner, Rule 1.1(2) read with Rules 2.1.

    to 2.4 prescribes a sequential procedure for settlement of

    shops which were left out from being renewed. The first step

    is a two stage lottery system. Only if the shops remain

    unsettled, can they be allotted on “first come first serve”

    basis. If still any shop remains unsettled even after

    completing the aforesaid two modes, offers could be invited

    based on maximum revenue.

    16. The petitioner submits that none of these

    mandatory procedures were followed but instead immediately

    after the renewal process allegedly concluded, the Excise

    Commissioner invoked Rule 42, and directed settlement of

    shops on basis of so called maximum offer, but in respect

    whereof there is no disclosure, nor any material on record.

    Thus, the case of the petitioner is that the entire procedure

    adopted by the Excise Commissioner was not only contrary to

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    the procedure prescribed, but also orchestrated to extend

    unfair benefit to the private respondent. The publication

    dated 18.02.2026 was not at all offer of any invitation from

    the public, but merely an eye-wash. According to the

    petitioner, it never informed the public that applications were

    being invited. Consequently, a large number of intending

    participants were deprived of the opportunity to compete.

    The entire action of the official respondents is unfair,

    arbitrary, discriminatory and violative of Article 14 of the

    Constitution of India. The petitioner has also alleged that

    respondent no.5 is connected with a sitting politician and the

    allotment of the shop in his favour was politically motivated.

    17. Respondent nos.1 to 4 as well as respondent no.5

    have filed their respective counter-affidavits controverting the

    averments made in the writ petition(s). It has been pleaded

    that the Excise Policy dated 05.03.2025 framed under Section

    40 of the United Provinces Excise Act, 1910 governed

    settlement of retail liquor shops for the excise years 2025-26

    to 2027-28. In terms of clause 1.1(3) of the Excise Policy,

    the Excise Commissioner after obtaining prior approval of the

    State Government issued General Directions dated

    03.02.2026, keeping in view the objective of obtaining

    maximum revenue. The applications for renewal of retail
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    liquor shops in District Dehradun were invited between

    12.02.2026 and 16.02.2026. According to the respondents,

    upon expiry of the last date, the District Excise Officer,

    Dehradun, by communication dated 17.02.2026, informed the

    Excise Commissioner that renewal applications had not been

    received in respect of three IMFL shops, namely, Rajpur Road

    (near RTO), Dalanwala (parade ground) and GMS Road.

    Acting upon the said communication, the Excise

    Commissioner directed that the aforesaid three shops be

    settled so as to secure the maximum possible revenue for the

    State. Pursuant thereto, a public notice inviting open offers

    was published on 19.02.2026 inviting offers upto 21.02.2026.

    The District Excise Officer, thereafter, forwarded the

    proposals received under the open offer process to the Excise

    Commissioner stating that the offers exceeded the maximum

    revenue fixed under the Excise Policy. On 25.02.2026, the

    Excise Commissioner approved the settlement of the said

    shops to the highest offerer. Pursuant thereto, all the offers

    received were placed before the District Level Allotment

    Committee. It duly scrutinized the offers and thereafter

    granted its approval for allotment of the three shops to the

    highest offerers. Based on the recommendation of the said

    Committee, the In-charge District Excise Officer, vide his

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    letter dated 02.03.2026, sought approval from the Excise

    Commissioner for renewal of the shops and for allotment of

    the three unrenewed shops in favour of the highest offerers.

    On 07.03.2026, the Excise Commissioner granted the

    approval. Acting upon the same, the allotment letters were

    issued on 24.03.2026, by the In-charge Excise Officer acting

    on behalf of the District Magistrate, in favour of the highest

    offerers.

    18. It is submitted that business in liquor is not a

    fundamental right but merely a privilege which the State

    confers keeping in mind the revenue considerations. The

    impugned exercise having been taken in the interest of the

    Revenue, the same cannot be assailed on the grounds taken

    by the petitioners. In support of the said submission, learned

    Advocate General as well as Mr. Amit Anand Tiwari, learned

    Senior Counsel appearing on behalf of respondent no.5 have

    placed reliance on the Constitution Bench judgment of the

    Supreme Court in “State of Punjab & another vs. Devans

    Modern Breweries Ltd. & another“, reported in (2004)

    11 SCC 26.

    19. The respondents have further pleaded that the

    petitioner had neither submitted any renewal application

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    within the prescribed period nor participated in the open offer

    process pursuant to the public notice dated 19.02.2026. It is

    also their case that no contemporaneous complaint was made

    before the Excise Commissioner or any competent authority

    regarding non-receipt of renewal application and that despite

    the availability of the statutory remedy under Section 11(1)

    of the Excise Act, no appeal was preferred against the order

    of settlement.

    20. Respondent no.5, in his counter-affidavit, has

    emphasized that the petitioner has deliberately misled the

    Court by conveying an impression that he had filed renewal

    application in time but the Authorities have not accepted the

    same, while the truth of the matter is that no application was

    filed by him within the timeline fixed for submission of the

    renewal applications and it was only on the next date that he

    sent an e-mail alleging that the Department was not

    acknowledging the receipt of his renewal application.

    21. It is further submitted that another misleading

    stand taken by the petitioner is that the Excise Commissioner

    had allotted the shop in dispute in favour of respondent no.5

    vide order dated 17.02.2026, whereas, the allotment was

    actually approved much later on 07.03.2026. The

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    submission, thus, is that the petitioner has not approached

    this Court with clean hands and has made mis-statement,

    therefore, the writ petition is liable to be dismissed on ground

    of misstatement and suppression of material facts. In

    support of the said submission, learned Senior Counsel

    appearing for respondent no.5 has placed a heavy reliance on

    the judgment of Supreme Court in “K.D. Sharma vs. Steel

    Authority of India Ltd. and others“, reported in (2008)

    12 SCC 481.

    22. The respondents have also raised preliminary

    objections regarding maintainability of the writ petition on the

    ground of delay and laches, contending that although the

    impugned action was taken in February and March, 2026, the

    writ petition was instituted on 15.05.2026. It is urged that

    on this ground as well, the writ petition deserves to be

    dismissed.

    23. Respondent no.5 has further alleged that the

    petitioner and members of his family had over the preceding

    years adopted the recurring pattern of allowing renewal

    applications to lapse and thereafter securing settlement of

    shops through open offer mechanism at amounts lower than

    the prescribed revenue, thereby causing substantial loss to

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    the State Exchequer. It is stated that in the present year, the

    Excise Commissioner in order to secure highest revenue, has

    adopted the open offer process after due advertisement. The

    step taken by the Excise Commissioner is for protecting the

    financial interest of the State and, therefore, the petitioner

    cannot be permitted to question the same.

    24. Having noticed the rival stands, this Court, by order

    dated 21.05.2026 in Writ Petition (M/B) No.404 of 2026,

    considered it appropriate to ascertain the circumstances, in

    which, the procedure prescribed under the Excise Policy had

    been departed from. The Principal Secretary, Excise

    Department was accordingly directed to conduct an inquiry

    and place before the Court the relevant records. The relevant

    part of the said order is extracted below:-

    “9. In the above facts and circumstance, we require the
    Principal Secretary, Department of Excise, Government of
    Uttarakhand, Dehradun to hold an inquiry and apprise the Court as to
    the how any allotment can be made without following the procedure
    prescribed under the Excise Policy for settlement of shops, which had
    remained unallotted.”

    25. In compliance of the said order, the Principal

    Secretary, Department of Excise, Government of

    Uttarakhand, filed an affidavit [in Writ Petition (M/S) No.404

    of 2026] enclosing therein the reports submitted by the

    District Magistrate and the Excise Commissioner. The reports
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    narrate the chronology of events, leading to the decision

    taken on 02.03.2026. They reiterate that no application was

    received in respect of three IMFL shops. The Excise

    Commissioner directed that the shops be settled keeping in

    view the objective of securing higher revenue.

    26. However, the stand of the State in Paragraph No.4

    of the affidavit of the Principal Secretary (Excise) is

    significant. It is stated that Rule 1.1(2) read with Rules 2.1

    to 2.4 of the Excise Policy prescribes a step-by-step

    procedure for settlement of shops remaining un-renewed. It

    further records that the prescribed stages were not followed

    before directing for settlement of shops by inviting offers on

    basis of highest revenue. The report further records that

    there was no justification for not invoking Rule 1.1(2) read

    with Rules 2.1 to 2.4 and that the objective of maximizing

    revenue alone could not justify departure from the prescribed

    procedure. The inquiry report, therefore, observes that

    allotment of the shops through the open offer process,

    without following the procedure prescribed under the Excise

    Policy, was not in accordance with the provisions of the

    Policy. The stand of the State Government, as taken in

    Paragraph No.4 of the affidavit of the Principal Secretary

    (Excise) is extracted below for ready reference:-
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    “After having gone through both the reports; findings of the
    inquiry are as follows:-

    The Excise policy 2025-2028 clearly mentions in rule 1.1(2) that
    “After the renewal process, the remaining unsettled domestic/
    foreign liquor shop shall be reallocated as per the procedures
    prescribed in this policy, namely, through lottery, first -come-
    first-serve basis, and maximum offers, ensuring that such
    allocations is settled in the interest of revenue” and further rules
    2.1 to 2.4 clearly mentions that procedure for the settlement of retail
    domestic/ foreign liquor shops.

    These rules prescribe for the stepwise procedure for the
    settlement of the shops. In light of the above mentioned rules it
    is clear that due process as laid down for the allotment of non-
    renewed shops was not followed either by the District level
    allotment committee or the Excise Commissioner. There is no
    justification for invoking Rule 42 of the policy by the
    Commissioner as there are Rules prescribed for the due process
    of allotment of non-renewed shops in the Rule 1.1.(2) and Rule
    2.1 to 2.4. Further achieving maximum revenue as justification
    and sole reason for allotment of shops in question through offer
    without following due process is not in accordance with the
    provisions of the excise policy.”

    27. During course of hearing of the writ petitions on

    14.07.2026, learned counsel for the petitioner stated that his

    client is offering Rs.15.00 Lakh higher per month as revenue

    for the shops in dispute. On the same date, the Court was

    also informed that the petitioner in WPMB No.404 of 2026,

    who was required to deposit Rs.10.00 Lakh as Security before

    this Court in compliance of the previous order dated

    17.06.2026 to prove her bonafide, had already deposited the

    said amount.

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    28. On such offer made by the petitioner, Mr. Amit

    Anand Tiwari, learned Senior Counsel appearing on behalf of

    respondent no.5, prayed for time to place on record a

    matching offer by respondent no.5. Consequently, on the

    said date, the matter was adjourned to 16.07.2026.

    29. On 15.07.2026, respondent no.5 filed an affidavit

    wherein he made a counter-offer which was Rs.3.00 Lakh

    higher than the offer of the petitioner. The petitioner,

    thereafter, filed another affidavit stating that he is ready to

    match any competitive offer submitted by any party.

    30. In view of the offers and the counter-offers

    received from the parties, learned Advocate General sought

    liberty to call the parties and find out the best offer. For the

    said purpose, he sought time till 18.07.2026.

    31. Since the principal defence of the respondents was

    that the impugned procedure had secured the highest

    possible revenue for the State, this Court considered it

    appropriate to test the correctness of the said contention and,

    accordingly, accepted the request made by learned Advocate

    General to permit him to call the parties and ascertain the

    best offer. The order passed in this regard on 16.07.2026 is

    as follows:-

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    “1. Mr. Sandeep Kothari and Mr. Mohammad Suhail, learned
    counsel for the petitioner.

    2. Mr. S.N. Babulkar, learned Advocate General assisted by Mr.
    Ganesh Dutt Kandpal, Mr. Amarendra Pratap Singh, learned
    Additional Advocate General with Mr. Rajeev Singh Bisht, learned
    Deputy Advocate General and Mr. Jagdish Singh Bisht & Mr. B.P.S.
    Mer, learned Standing Counsel for the State.

    3. Mr. Amit Anand Tiwari, learned Senior Counsel (through VC)
    assisted by Mr. Vikas Bahuguna, learned counsel for the respondent
    No. 5.

    4. Private respondent No. 5 has filed his affidavit stating that
    he is ready to offer three lakhs higher than the offer of the petitioner.

    5. The petitioner has thereafter filed another affidavit stating
    that he is ready to match any competitive offer submitted by any
    party.

    6. Learned Advocate General appearing for the State submits
    that the State in the aforesaid facts and circumstances desires to call
    the petitioner, respondent No. 5 and, other persons, who had made
    offer for the shop in question, and find out the best offer. He states
    that the same would be done on 18.07.2026 at 12:00 noon.

    7. The parties would be permitted to be present personally, or
    through their authorized representative, for which a duly executed
    Power of Attorney should be there in favour of the agent. The entire
    proceedings would be videographed.

    8. As jointly prayed, put up on 20.07.2026.

    9. The interim order is extended till the next date of hearing
    but with the clarification that the order would be effective only in
    relation to the shop in dispute and not the third shop i.e. G.M.S.

    Road, Dehradun.”

    32. Pursuant to the liberty granted by this Court, the

    State issued a fresh public invitation in newspaper and invited

    offers from all interested participants. The result of the fresh

    process is of considerable significance. A number of fresh

    offers were received. The highest offers received pursuant to

    the public invitation were substantially higher than the
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    amount at which the shops had originally been settled.

    Indeed, in respect of the IMFL shop at Dalanwala (parade

    ground), the maximum offer received is from one Neha

    Watsal Chopra for Rs.1,51,00,000/- for the year 2026-27 and

    Rs.1,60,00,000/- for the year 2027-28. In respect of IMFL

    shop at Rajpur Road (near RTO), again the maximum offer of

    Neha Watsal Chopra is for Rs.1,29,00,022/- for the year

    2026-27 and Rs.1,33,00,000/- for the year 2027-28.

    33. The entire proceedings in this regard were held in

    the presence of a Committee constituted for the purpose by

    the District Magistrate. It comprised of the ADM

    (Administration) being the Chairman, In-charge District

    Excise Officer, Dehradun, Excise Inspector, Sector-1,

    Dehradun, Excise Inspector, Sector-2, Dehradun and the

    Excise Inspector, Sector-3, Rishikesh. The entire proceedings

    were videographed. The signatures of all the parties have

    been duly obtained on the bid-sheet, in which, value of offer

    given by each party is duly recorded. It bears signatures of

    all the parties.

    34. Having noticed the rival contentions and the

    subsequent developments which have taken place during the

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    pendency of the writ petitions, the principal questions which

    arise for determination are:-

    “(i) Whether Rule 1.1(2) read with Rules 2.1 to 2.4
    prescribes a mandatory sequential procedure for
    settlement of shops remaining unrenewed;

    (ii) Whether Rule 42 authorized the Excise
    Commissioner to bypass the procedure specifically
    prescribed under the Excise Policy;

    (iii) Whether the publication dated 18.02.2026
    constituted a valid public invitation granting equal
    opportunity to every intending offerer and was fair and
    transparent;

    (iv) Whether the receipt of revenue higher than the
    prescribed annual revenue can justify departure from the
    mandatory procedure;

    (v) What is the effect of the inquiry reports
    submitted pursuant to the directions of this Court;

    (vi) What is the evidentiary value of the subsequent
    process undertaken by the State during the pendency of
    the writ petitions pursuant to the order of this Court;
    and,

    (vii) To what relief, if any, is the petitioner
    entitled.”

    35. Having heard learned counsel for the parties at

    length, and considered the pleadings, the original records

    produced before the Court, the Excise Policy 2025-28, the

    General Instructions dated 03.02.2026 issued by the Excise

    Commissioner, and the inquiry reports submitted pursuant to

    the directions of this Court, this Court is of the considered

    opinion that the impugned action cannot be sustained in law.

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    36. At the outset, it needs to be noticed that the

    controversy before the Court is not whether the State is

    entitled to maximize its revenue, while dealing with its

    exclusive privilege in intoxicants. The law in this regard is

    well-settled by the Constitution Bench of the Supreme Court

    in Devans Modern Breweries Ltd. (supra), wherein it was

    held that no one has any fundamental right to trade in liquor

    and the State is entitled to evolve an appropriate policy for

    grant of licenses with a view to securing optimum revenue.

    Equally well-settled, however, is the principle that the State,

    while pursuing the objective of revenue maximization,

    remains bound by the constitutional mandate of fairness,

    transparency and non-arbitrariness. The revenue

    considerations cannot justify departure from the procedures

    prescribed by the Government itself.

    37. The Excise Policy 2025-28 has been issued by the

    State in exercise of its rule making power under Section 40 of

    the U.P. Excise Act, 1910. It is a complete code regulating

    renewal as well as settlement of retail liquor shops.

    38. Rule 1.1(2) provides that shops remaining

    unsettled after completion of the renewal process, shall be

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    settled in accordance with the procedure prescribed under the

    Policy: firstly, through lottery; secondly, on first-come, first-

    serve basis, and; thirdly, on basis of maximum offers. The

    detailed procedure governing each of these modes is

    contained in Rules 2.1 to 2.4. 1.1(2) and Rules 2.1 to 2.4 are

    reproduced below:-

    “1.1(2) नवीनीकरण के प�ात् अवशेष अ�वस्थािपत देशी/ िवदेशी
    म�दरा दुकान� म� पुन�नर्धारण करते �ए नीित म� दी गयी ���या के अनुसार (लाटरी,
    �थम आवक �थम पावक एवं अिधकतम ऑफर) म�दरा दुकान� का �वस्थापन
    राजस्व िहत म� �कया जायेगा।

    2.1 िव�ीय 2024 -25 मे संचािलत म�दरा क� दुकान� मे अनुज्ञापी य�द
    िव�ीय वषर् 2025 -26 एवं आगामी िव�ीय वषर् 2026 -27 एवं 2027 -28 हेतु
    िनधार्�रत राजस्व पर म�दरा दुकान संचालन/ नवीनीकरण के िलए इच्छु क है, तो अहर्
    आवेदक �ारािनधार्�रत �ा�प म� मय शपथ प� आवेदन करने पर िजलािधकारी /
    िजला आबकारी अिधकारी क� आख्या पर आबकारी आयु� �ारा अंितम िनणर्य िलया
    जायेगा।

    2.2 नवीनीकरण क� ���या के प�ात अवशेष अ�वस्थािपत म�दरा दुकान�
    का �वस्थापन दो चरण क� लॉटरी ���या के माध्यम से �कया जाएगा।

    2.3 उपरो� दोन� चरण� के प�ात अवशेष अ�वस्थािपत म�दरा दुकान�
    को पूणर् राजस्व पर �ा� करने के इच्छु क आवेदक को िजलािधकारी के समक्ष आवदेन
    �स्तुत करना होगा तथा िजलािधकारी �थम आवक �थम पावक के िस�ान्त पर
    दुकान का आवंटन कर�गे।

    2.4 उपरो� समस्त चरण� के प�ात अवशेष अ�वस्थािपत म�दरा दुकान�
    का �वस्थापन िजलािधकारी / िजला आबकारी अिधकारी �ारा ऑफर आमंि�त कर
    आबकारी आयु� को �ेिषत �कया जायेगा, िजस पर आबकारी आयु� �ारा िनणर्य
    िलया जा सके गा।”

    39. A conjoint reading of these provisions unmistakably

    demonstrates that they are not independent alternatives

    available to the authorities at their discretion. Rather, they

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    constitute successive stages of one integral process. Renewal

    is the first stage. If renewal does not materialize, settlement

    is to be attempted through lottery. If lottery also fails, the

    settlement is to be made on ‘first come first serve’ basis.

    Invitation of maximum offers is contemplated only thereafter

    in respect of shops which remain unsettled through the afore-

    said three modes.

    40. Any other interpretation would render the elaborate

    provisions contained in Rules 2.2, 2.3 and 2.4 wholly

    redundant. It is a settled principle of interpretation that

    every provision of a statutory instrument must be given its

    due meaning and no clause should be construed in a manner

    which renders another provision otiose.

    41. Rule 1.1(2) merely identifies the permissible modes

    of settlement; the manner and sequence in which those

    modes are to be adopted is prescribed in the successive

    provisions of Rules 2.2, 2.3 and 2.4.

    42. The principal defence urged on behalf of the

    respondents is founded upon Rule 42 of the Excise Policy.

    According to the State, Rule 42 empowered the Excise

    Commissioner to dispense with the normal procedure and

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    straightaway resort to settlement through maximum offers in

    order to secure higher revenue.

    43. The submission cannot be accepted.

    44. Rule 42 is as follows:-

    “42. थोक एवं खुदरा अनुज्ञापन�, आसवािनय� व बॉट�लंग ईकाई के संचालन म�
    �वहा�रक क�ठनाई आती है और इसके सम्बन्ध म� आबकारी नीित िवषयक िनयमावली या
    अन्य सुसंगत िनयमावली म� �ािवधान नह� है तब ऐसी दशा म� आबकारी आयु� �ारा �देश
    के राजस्विहत म� िनणर्य िलया जा सके गा।”

    45. Power vested in the Excise Commissioner under

    Rule 42 is clearly residuary in nature. It is intended to meet

    situations where the Policy does not provide for a particular

    contingency or where difficulties arise in implementation

    thereof. A residuary provision supplements the substantive

    provisions; it cannot override them. Where the Policy itself

    prescribes an elaborate mechanism governing settlement of

    shops remaining un-renewed, Rule 42 cannot be invoked to

    bypass the mandatory provisions of the Policy solely on the

    ground that such course would generate a higher revenue.

    46. In the present case, no vacuum existed in the

    Policy. No unforeseen contingency had arisen. The

    eventuality which arises upon expiry of the renewal period

    was specifically dealt with in the Policy itself under Rules 2.1

    to 2.4. The only reason assigned for invoking Rule 42 is that

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    the afore-said three shops possess the potential of generating

    higher revenue through competitive offers. That

    circumstance, by itself, cannot constitute a practical difficulty

    warranting exercise of the residuary power.

    47. The conclusion receives considerable support from

    the General Instructions dated 02.03.2026 issued by the

    Excise Commissioner herself. Clauses 7, 11, 12, 36 and 55

    prescribe the manner in which the shops remaining un-settled

    after renewal are to be dealt with. They require preparation

    of list of such shops, publication of comprehensive notice,

    wide publicity through newspapers, departmental website and

    public offices, scrutiny of applications and adherence to the

    stages contemplated under the Excise Policy before the

    process of inviting maximum offers is undertaken. The

    aforesaid clauses are as follows:-

    “7. नवीनीकरण के प�ात अ�वस्थािपत तथा नवसृिजत जनपद क� सी०एल०-5सी (देशी
    शराव व बीयर) एवं एफ०एल०-5डी (िवदेशी म�दरा व बीयर) क� दुकानवार िनधार्�रत लाईस�स
    फ�स एवं न्यूनतम गारन्टीड अिभकर (जो भी लागू हो) क� सूची शासन क� वेबसाईट
    www.uk.gov.in एवं www.uttrakhandexcise.org.in िजला आबकारी अिधकारी कायार्लय
    तथा कलेक्�ेट, तहसील एवं उप-तहसील, िवकासखण्ड तथा नगर पािलका कायार्लय� के नो�टस वोडर्
    पर सावर्जिनक �दशर्न हेतु लगायी जायेगी। उ� म�दरा दुकान� के �वस्थापन हेतु �ापक �चार-
    �सार करना भी सुिनि�त कर� गे।

    11. नवीनीकरण के प�ात अवशेष रह गई म�दरा दुकान� के �वस्थापन हेतु जनपद के
    राजस्व ल�य के सापेक्ष अवशेष राजस्व को सबंिधत म�दरा दुकान� म� तकर् संगत एवं वास्तिवक उठान
    क्षमता के आधार पर पुन�नर्धार्�रत करते �ए म�दरा दुकान� का �वस्थापन िनधार्�रत कायर्�मानुसार
    दो चरण क� लॉटरी ���या के माध्यम से �कया जायेगा। अवशेष म�दरा दुकान� के �वस्थापन हेतु
    लॉटरी आ�द क� ���या हेतु िजला स्तरीय आवंटन सिमित के सदस्य एवं लाइस�स �ािधकारी /
    िजलािधकारी �वस्थापन के समय स्वयं अिनवायर् �प से उपिस्थत रह�गे। लॉटरी ���या के प�ात

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    �थम आवक �थम पावक तथा अिधकतम ऑफर क� ���या म�दरा दुकान� के �वस्थापन हेतु
    अपनाई जाएगी िजसके िलए िनधार्�रत समय सारणी के अनुसार कायर्वाही सुिनि�त क� जाएगी।

    12. नवीनीकरण के प�ात अवशेष अ�वस्थािपत म�दरा दुकान के िलये �ा� आवेदन प��
    को एक पंिजका म� पंजीकृ त �कया जायेगा। पंिजका के पंजीयन संख्या को आवेदन प� क� रसीद म�
    अं�कत करके आवेदक को यह रसीद उपलब्ध करा दी जायेगी तथा इन मूल रसीद� को पहचान प�
    मानकर आवेदक को लॉटरी के िलये िनधार्�रत हाल म� �वेश क� अनुमित दी जाएगी। �ा� आवेदन�
    क� कम्प्यूटर म� भी �िवि� क� जायेगी। लॉटरी / चयन ���या के समय आवेदक स्वयं उपिस्थत रहेगा
    के वल अप�रहायर् िस्थित म� आवेदक क� अनुपिस्थित म� उसका अिधकृ त �ितिनिध नोटराइज्ड
    �ािधकार प� के साथ ही मान्य हो सके गा, अन्यथा क� िस्थित म� आवेदक को उसक� धरोहर धनरािश
    जब्त कर चयन क� ���या से बाहर �कया जा सके गा।

    36. लॉटरी ���या के प�ात िनधार्�रत वा�षर्क राजस्व पर �थम आवक �थम पावक के
    िस�ांत पर दुकान का आवंटन �कया जाएगा। य�द इस ���या म� कोई दुकान अ�वस्थािपत रह
    जाती है, तो िजला आबकारी अिधकारी �ारा अ�वस्थािपत म�दरा दुकान� को �वस्थािपत करने
    हेतु िनधार्�रत राजस्व के सापेक्ष सावर्जिनक िवज्ञि� के माध्यम से ऑफर आमंि�त �कए जाएंगे तथा
    अिधकतम ऑफरदाता के पक्ष म� िजलािधकारी / िजला आबकारी अिधकारी क� आख्या पर आबकारी
    आयु� �ारा िनणर्य िलया जाएगा, दुकान के राजस्व क� गणना वास्तिवक �दवस� के िहसाब से
    आवंटन क� ितिथ से क� जाएगी।

    55. नवीनीकरण के उपरांत अ�वस्थािपत म�दरा दुकान� हेतु राजस्व का पुन�नर्धार्रण कर
    जनपद म�दरा दुकान� का राजस्व से संबंिधत समस्त ब्यौरा कायार्लय आबकारी आयु� को �ेिषत
    कर� गे ता�क �वस्थापन के िलए जनपद� हेतु सामूिहक िवज्ञि� समाचार प�� म� �कािशत क�
    जाएगी। जनपद अपने स्तर पर िवज्ञि� जारी ना कर� । अप�रहायर् िस्थितय� एवं राजस्व िहत म�
    आबकारी आयु� से अनुमित उपरांत जनपद िवज्ञि� जारी कर सक� गे।”

    48. These instructions are contemporaneous executive

    directions issued by the very authority who, subsequently,

    invoked Rule 42. They demonstrate that, according to the

    own understanding of the Department, settlement by

    maximum offer is not intended to be the immediate

    consequence of failure of renewal. It is only the last stage of

    the process after the earlier modes have been exhausted.

    49. The respondents have placed much reliance on the

    publication dated 18.02.2026 in contending that adequate

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    publicity had been given before settlement by maximum

    offers.

    50. This Court has carefully examined the said

    publication. The publication merely stated that the process of

    settlement of retail liquor shops was underway and that

    further information could be obtained from the office of the

    District Excise Officer or from the departmental website.

    Significantly, it did not invite applications nor any offers.

    Even the names of the shops proposed to be settled have not

    been mentioned. The publication did not even prescribe the

    eligibility conditions, the mode of participation, the Authority

    before whom applications were to be submitted or the last

    date for submission of the offers. Such publication cannot, by

    any accepted standard, be regarded as a public invitation

    intended to generate effective competition. A man of

    ordinary prudence reading the publication would not

    understand that the applications or competitive offers were

    being invited in respect of any identified liquor shop. At best,

    the publication conveyed that some process was in progress.

    51. The argument that complete particulars were

    available on the departmental website is specious. Unless the

    advertisement itself informs intending participants that

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    applications are invited, there is no occasion for members of

    the public to search the departmental website. The object of

    a public advertisement is not merely to disseminate

    information but to ensure that every eligible person receives

    adequate notice of the opportunity so that genuine

    competition is generated. The publication dated 18.02.2026

    utterly failed to achieve the said object.

    52. There is another circumstance which totally

    demolishes the defence advanced by the respondents. The

    record reveals that in respect of other liquor shops in

    different districts of the State, which remained unsettled, the

    respondents themselves followed the procedure contemplated

    under Rule 3.17 of the Excise Policy and Clause 55 of the

    General Instructions. A comprehensive public advertisement

    dated 16.03.2026 was issued inviting applications. The said

    advertisement specifically identified the shops proposed to be

    settled, prescribed the eligibility conditions, disclosed the

    relevant particulars and invited participation from all

    interested persons after giving wide publicity. The contrast

    between the two exercises is too glaring to escape notice.

    Whereas remaining unsettled shops across the State were

    dealt with by adopting the elaborate procedure prescribed

    under the Excise Policy and the General Instructions, only the
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    three shops in District Dehradun, including the two shops in

    dispute in the present writ petitions were subjected to an

    entirely different procedure by resorting to Rule 42. The

    respondents have not disclosed any rational basis for such

    differential treatment. There is no material on record, not

    even whisper, that any attempt was made in respect of shops

    remaining unrenewed in other districts to explore whether

    they had the potential to generate higher revenue and,

    therefore, should straightaway be settled on basis of

    maximum offer, as in the instant case.

    53. The state-wide advertisement dated 16.03.2026, in

    respect of unrenewed shops of other districts, is significant

    for yet another reason. If Rule 42, indeed, conferred an

    unbridled power in favour of the Excise Commissioner to

    abandon the prescribed procedure, whenever the authorities

    anticipated higher revenue, there was no reason for the

    respondents themselves to issue a detailed advertisement

    dated 16.03.2026 in respect of other shops and to adhere to

    the three stage procedure prescribed under the Policy. Their

    subsequent conduct, therefore, belies the interpretation now

    sought to be given to Rule 42. The Court is, therefore,

    unable to accept the contention that the procedure adopted in

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    the present case was permissible under the Excise Policy, or

    any such discretion was vested in the Excise Commissioner.

    54. Equally significant is the extraordinary haste with

    which the entire exercise was completed. The renewal

    process was closed on 16.02.2026. On the very next day,

    the District Excise Officer submitted his report and the Excise

    Commissioner invoked Rule 42. The publication was issued

    on 18.02.2026, offers were allegedly received within next few

    days and recommendation for settlement was followed

    immediately thereafter. Thus, within a remarkably short

    span, the Authorities, not only decided to abandon the

    prescribed procedure, but also succeeded in concluding the

    process of settlement.

    55. The unusual haste with which the Authorities have

    proceeded viewed together with no proper public invitation,

    coupled with the departure from the prescribed procedure

    leads to irresistible conclusion that the process adopted was

    not fair, but deliberately kept opaque, to exclude meaningful

    public participation and genuine competition.

    56. The above conclusion stands further reinforced by

    the inquiry conducted pursuant to the orders of this Court.

    The reports submitted by the District Magistrate
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    acknowledged that Rule 1.1(2) read with Rules 2.1 to 2.4

    contemplated a sequential procedure for settlement of shops

    remaining un-renewed. The reports unequivocally state that

    the prescribed procedure was not followed before directing for

    settlement of shops through maximum offers and that Rule

    42 could not have been invoked, where the Policy itself

    contained specific procedure to meet the contingency.

    57. It is true that the report seeks to justify the

    departure on the ground that higher revenue was likely to be

    realized. However, that explanation cannot dilute the factual

    findings recorded therein. The respondents’ own inquiry

    substantially supports the petitioner’s contention that the

    mandatory procedure prescribed under the Excise Policy and

    the General Instructions was not adhered to.

    58. The aforesaid conclusions, in the opinion of the

    Court, are sufficient to invalidate the impugned action.

    However, as noted in the foregoing part of the judgment, an

    important development took place during pendency of the

    writ petitions and which has significant bearing on the relief

    to be granted.

    59. Throughout the proceedings, the consistent stand

    of the respondents has been that the procedure adopted by
    31
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    them, though in deviation of procedure prescribed under the

    Excise Policy, enabled the State to secure the highest possible

    revenue. Revenue maximization has, thus, been sheet-

    anchor of the defence set-up by the respondents.

    60. Having regard to the said stand and without

    expressing any final opinion on merits of the controversy, this

    Court on the suggestion of the learned Advocate General

    permitted the State to invite all eligible persons to make

    offers. The purpose of granting such liberty was not to

    validate or invalidate the earlier process, but to objectively

    ascertain whether the respondents’ assertion that by

    following the impugned process, the respondents have

    succeeded in generating maximum revenue, is correct or not.

    61. As already noted, pursuant to the liberty granted,

    the State issued public advertisement on 16.07.2026 inviting

    offers from all interested persons. The process witnessed

    participation of several eligible bidders and culminated in

    receipt of fresh offers and counter-offers. The outcome of the

    subsequent exercise is very significant. The highest offers

    received, pursuant to fresh invitation, are almost of double

    the value at which the subject shops had been settled under

    the impugned process.

    32

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    62. While we are conscious of the fact that the

    impugned administrative action cannot be adjudged wholly on

    the basis of the subsequent developments, but undoubtedly,

    the same totally demolishes the defence that the process

    followed was a bonafide exercise to generate maximum

    revenue. On the contrary, the subsequent events, objectively

    demonstrate that the market response was significantly

    higher when the State adopted a genuinely transparent

    procedure after extending equal opportunity to all intending

    participants. The subsequent process lends substantial

    support to the conclusion already reached by this Court that

    the publication dated 18.02.2026 was merely an eye-wash

    and did not generate meaningful competition. It furnishes

    objective corroboration to the finding arrived at by this Court

    that the impugned process was not fair and did not generate

    effective competition, nor elicited the best possible market

    response.

    63. The record of the proceedings before us further

    reveals certain glaring facts which cannot escape notice:

    (i) The In-charge District Excise Officer, by letter

    No.3424, dated 17.02.2026 forwarded a report to the

    Excise Commissioner enclosing the particulars of the

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    applications received upto 16.02.2026 in respect of

    Indian Made Foreign Liquor vends, country-made liquor

    vends, and the three IMFL outlets, for which, according

    to the report, no applications had been received.

    (ii) The record also contains another report of the

    same date, bearing letter No.3426, submitted by the

    same officer, to the Excise Commissioner. It is similarly

    worded except for addition of one more paragraph

    whereby it was stated that discussions were held with

    the existing licensees and other persons in relation to

    the three IMFL vends, for which, renewal applications

    had not been received and from which, it transpired that

    there was probability of fetching higher revenue for the

    said shops than that prescribed. Although, the report

    also mentions the value of higher offers received during

    the course of such discussions, but surprisingly, there is

    no such higher offer on record. Further, as already

    noted, on the same date, the Excise Commissioner vide

    letter No.23906, dated 17.02.2026, even proceeded to

    grant approval for allotment of these three shops on

    basis of maximum revenue invoking Rule 42. On the

    very next day, i.e. 18.02.2026, she approved the notice

    34
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    for publication in newspapers, which as already

    discussed, did not amount to a valid publication.

    64. Another noteworthy fact is that, in the report

    submitted by the In-charge District Excise Officer on

    23.02.2026 vide letter No.3526 to the Excise Commissioner

    regarding receipt of offers on basis of revenue higher than

    that prescribed, there is no mention of any advertisement in

    pursuance of which, the offers were received. It only refers

    to the order of the Excise Commissioner vide letter No.23906,

    dated 17.02.2026 as the basis on which the offers were

    received. This clearly indicates that even the In-charge

    District Excise Officer was conscious of the fact that there had

    been no public invitation of offers, nor did the notice dated

    18.02.2026, bearing No.23928, amount to an invitation of

    offers from the public.

    65. Another important facet of the entire exercise

    which needs to be noticed is that, although four offers each

    were allegedly received in respect of two IMFL outlets in

    dispute, they were all very close to each other, with a

    difference of merely a few hundred or a few thousand rupees.

    The higher offer allegedly received in respect of the shop at

    Rajpur Road (near RTO) was in sum of Rs.9,00,70,000/- for

    35
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    the year 2026-27 and Rs.9,30,14,000/- for the year 2027-28.

    After the alleged public invitation of offers, Pyare Lal

    submitted a bid of Rs. 9,00,80,000/- for the financial year

    2026-27 and Rs.9,30,14,009/- for the year 2027-28.

    Another bidder, Bhanu Karnwal, allegedly submitted a bid of

    Rs.9,00,79,500/- for the financial year 2026-27 and

    Rs.9,30,14,100/- for the year 2027-28. Kush Walia

    submitted a bid for Rs.9,00,78,000/- for the year 2026-27

    and Rs.9,30,14,030/- for the year 2027-28. Vinay, the

    successful bidder (respondent no.5 herein) submitted a bid of

    Rs.9,00,81,125/- for the financial year 2026-27 and

    Rs.9,30,15,450/- for the year 2027-28. Likewise, the higher

    offer allegedly received in respect of the shop at Dalanwala

    (Parade Ground) was in sum of Rs.10,00,90,000/- for the

    year 2026-27 and was Rs.10,20,60,000/- for the year 2027-

    28. Shrikant Kala submitted a bid of Rs.10,00,93,000/- for

    the year 2026-27 and Rs.10,20,58,000/- for the year 2027-

    28; Naveen Chopra submitted a bid of Rs.10,00,95,000/- for

    the year 2026-27 and Rs.10,20,50,000/- for the year 2027-

    28; Himanshu Gupta submitted a bid of Rs.10,00,94,250/-

    for the year 2026-27 and Rs.10,20,40,000/- for the year

    2027-28. Deepesh, the successful bidder (respondent no.5

    36
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    herein) submitted a bid of Rs.10,00,95,124/- for the year

    2026-27 and Rs.10,20,60,000/- for the year 2027-28.

    66. It is indeed a matter of surprise that there was

    hardly any difference in the bids received from different

    persons. This also leaves the Court wondering whether the

    offerers were genuine or whether the bidders had formed a

    cartel and were aware of the bids of each other.

    67. As per the provisions contained in the Excise Policy

    and the General Instructions, the District Level Committee for

    licensing consists of the Collector of the District as its

    Chairman, one Gazetted Officer nominated by the Excise

    Commissioner as Member, and the District Excise Officer of

    the District as another Member, who also functions as the

    Secretary of the Committee. The power to scrutinize the

    applications and to approve applications for renewal and

    settle shops is vested in the said Committee, except in cases,

    where even after exhausting all the modes prescribed under

    the Excise Policy, the shops could not be settled.

    Consequently, the offers which were presumably received

    pursuant to the approval granted by the Excise Commissioner

    on 17.02.2026, were placed before the District Level

    Committee. There is on record two reports of the said

    37
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    Committee. One pertains to the applicants in whose favour

    recommendations were made for renewal, and the other

    relates to recommendations made pursuant to the directions

    of the Excise Commissioner dated 17.02.2026, under which

    the shops were to be settled on basis of maximum revenue.

    None of these two reports mention the date on which the

    proceedings of the Committee were allegedly held. However,

    in the report prepared by the Committee in respect of

    renewal of licenses, the District Magistrate while affixing his

    signature, has mentioned the date on which he presumably

    signed the report as 28.02.2026. Just above his signature,

    he has endorsed- “as scrutinized and proposed”. In the other

    report prepared by the Committee, again there is no mention

    of any date on which the proceedings were held. Again, while

    signing the said report, the District Magistrate has mentioned

    the date as 28.02.2026. The most interesting part is the

    endorsement made by the District Magistrate on the said

    report while signing it, which is as follows:-

    “Based on आयु� discrete recommendation and direction issued

    vide order no.24505, dated 25-02-26 & 23906, dated 17-02-26, the
    office may proceed further.”

    68. What “discrete recommendation” was made by

    the Excise Commissioner to the District Magistrate pertaining

    to settlement of three IMFL outlets is something which leaves
    38
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    the Court wondering. In her affidavit, the Excise

    Commissioner has failed to disclose the nature of the

    “discrete recommendation” made by her to the Committee,

    relying on which, the Committee made recommendation for

    allotment of the shops in dispute in favour of the private

    respondents.

    69. Another feature of the case is that, although the

    allottees of the two shops are different persons, and it is also

    so portrayed before this Court, the petitioner has specifically

    averred in Paragraph No.58 of his rejoinder-affidavit that both

    shops are being operated in the common name “Liquor Fort”.

    He has also brought on record photographs of both the shops,

    and the allegations made by the petitioner in this regard have

    remained uncontroverted. This also lends credence to the

    doubt in the mind of the Court that though the allotments

    have been made in the name of different persons, the actual

    beneficiary is a cartel. This circumstance also, to a great

    extent, fortifies the allegation made by the petitioners that

    the entire exercise was carried out at the behest of the Excise

    Commissioner.

    70. The record also reveals interpolation. As noticed

    above, under the Excise Policy and the General Instructions,

    39
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    the scrutiny of the applications/ proposals is required to be

    undertaken by the District Level Committee. However, the

    record shows that the District Excise Officer examined the

    proposals himself, accepted some and rejected others. He

    purportedly did so on basis of the direction issued by the

    Excise Commissioner vide letter No.24505, dated 25.02.2026.

    Below his endorsement, the District Excise Officer has put the

    date as 25.02.2026.

    71. However, the record shows that the meeting of the

    District Level Committee was held on 28.02.2026, as is

    evident from the date recorded beneath the signature of the

    District Magistrate on the minutes of the proceedings. The

    proposals, therefore, could not have been considered before

    that date.

    72. It appears that the District Excise Officer, after

    noticing that District Magistrate had put the date, altered the

    date of his endorsement from 25.02.2026 to 28.02.2026.

    The interpolation is uniform across all the proposals and is

    plainly visible. This unmistakenly shows that the record was

    subsequently manipulated to bring the endorsement in

    conformity with the date of the Committee meeting.

    40

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    73. The petitioner asserts that his application for

    renewal was submitted within the prescribed time, but was

    not acknowledged or entered in the register. He relies upon

    e-mails allegedly sent on 17.02.2026, the day immediately

    following the closure of the renewal process, to the offices of

    the District Magistrate, District Excise Officer, the Excise

    Commissioner as well as the Principal Secretary, Excise.

    The respondents, however, dispute the receipt of the

    application.

    74. The dispute as to whether the petitioner had, in

    fact, submitted the renewal application is essentially a

    question of fact. Even assuming, in favour of the

    respondents, that no valid renewal application had been

    submitted, the authorities were not thereby empowered to

    bypass the procedure prescribed under the Excise Policy and

    proceed straightaway to allot the shops on the basis of

    maximum revenue. Thus, even if the petitioner ultimately

    fails to establish any enforceable right for renewal, he is

    nevertheless entitled to question the legality of the allotment

    that it was made in violation of the Excise Policy and the

    General Instructions. The challenge, therefore, raises a

    broader issue concerning adherence to the prescribed method

    in the disposal of a valuable State privilege.
    41

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    75. For this reason, while it would not be appropriate,

    on the present material, to direct the authorities to renew the

    license of the petitioner, it would equally not preclude the

    Court from setting-aside the impugned allotment.

    76. Learned counsel for respondent no.5 vehemently

    contended that communication of the Excise Commissioner

    dated 17.02.2026 was not an allotment in favour of

    respondent no.5. The petitioner had misled this Court into

    believing that it was allotment of shop in favour of

    respondent no.5 and succeeded in obtaining interim order on

    basis of the said misrepresentation. Consequently, the writ

    petition is liable to be dismissed on this ground alone.

    77. We have given our anxious consideration to the

    above submission. Although, the communication dated

    17.02.2026 did not itself finally allot the shop in favour of the

    private respondent, but in the facts and circumstances of the

    instant case, it cannot be said to be an innocuous preliminary

    communication. It constituted the foundational decision to

    bypass the procedure prescribed and settle the three shops

    through maximum offers. The respondents’ own pleadings

    show that pursuant to the report of District Excise Officer, the

    District Excise Commissioner, by impugned communication,
    42
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    directed the three shops to be settled at the maximum

    possible revenue and that this direction led directly to the

    allotment of the shop in favour of the private respondent. A

    challenge to the foundational decision necessarily brings the

    consequential order under scrutiny. The petitioner’s

    description of the order dated 17.02.2026 as an allotment

    order may be technically imprecise, but the same does not

    alter the substance of the challenge or amount to such mis-

    statement as should result in dismissal of the writ petition.

    78. The respondents have also made extensive

    allegation against the petitioner and his family members that

    over several years, they have succeeded in obtaining licenses

    of multiple liquor shops by adopting sharp practices. These

    allegations do not answer the core issue. If any earlier

    allotment has been obtained by the petitioners or any

    member of his/ her family illegally, collusively or by

    misrepresentation, the competent authority is free to initiate

    proceedings in accordance with law. However, these

    allegations against the petitioners would not legalize the

    present exercise.

    79. The petitioner, in turn, has also alleged that

    respondent no.5 secured the allotment under political

    43
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    influence. It is alleged, he is connected with a Minister and

    that allotment was obtained by exercising undue political

    influence. We refrain ourselves from expressing any opinion

    on these allegations, as according to us, the petitions can be

    decided without recording any finding on these allegations.

    The allotment is liable to be struck down on basis of the

    discussion made hereinabove.

    80. Another contention of the respondents has been

    delay and laches in advancing the challenge. In this regard,

    it is noteworthy that the license in question was granted for

    two financial years. The allotment, as held above, is found to

    be contrary to the Excise Policy and also appears to be an

    outcome of extraneous considerations. Where the action is

    found to be arbitrary and an outcome of colorable exercise of

    power, this Court would not decline relief merely on basis of a

    delay of few months in approaching this Court.

    81. Before parting, we would also deal with an

    objection made by Mr. U.K. Uniyal, learned Senior Counsel

    appearing for the petitioners. He submitted that offer of

    Neha Watsal Chopra is not liable to be considered as the

    Court had permitted the State to invite only the petitioner,

    the respondent, and other bidders who earlier submitted the

    44
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    bids, to participate in the tender process in pursuance of

    order dated 16.07.2026.

    82. However, we find no force in the submission. In

    our order dated 16.07.2026, while we noted the submission

    of the learned Advocate General that State would call the

    petitioner, respondent no.5 and other bidders, the Court nor

    the State ever intended to exclude other persons from

    participating in the final exercise to be undertaken by the

    State. The advertisement issued by the State reveals that

    the State, in all propriety, invited applications from the

    general public and permitted only those to participate who

    deposited the EMD and relevant documents. In fact, if the

    exercise would have been confined to only the petitioners and

    those who had made bids earlier, it would have resulted in

    perpetuation of the same illegality which was committed

    earlier, namely, absence of proper advertisement and the

    consequent denial of equal opportunity to all eligible persons

    desirous of participating in the process.

    83. Having regard to the discussion made above, the

    writ petitions are disposed of as follows:-

    (i) The order of the Excise Commissioner dated

    17.02.2026 and all consequential actions, including
    45
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    allotment of shops in dispute in favour of private

    respondents, shall stand set-aside and quashed.

    (ii) The District Magistrate, who is the Chairman of the

    District Level Committee, shall place all the offers

    received in pursuance of the exercise undertaken by the

    State on basis of advertisement dated 16.07.2026 as

    well as offers and counter-offers received in the present

    proceedings before the Committee for consideration and

    for appropriate decision within one week.

    (iii) In case, the offers submitted by respondent no.5

    are accepted, they shall be permitted to resume their

    operations on basis of fresh offers. In case, however,

    offer of some other party is accepted, the license fees

    and the security deposit of respondent no.5 shall be

    refunded within next one week. They shall also not be

    charged the minimum monthly guaranteed duty since

    the date they could not operate the shops, and in case,

    any amount had been received from them on that count,

    the same shall also be refunded to them positively within

    one week. The remaining stock of liquor, if any, in the

    hands of respondent no.5 shall also be taken back and

    disposed of in terms of Rule 17 of the Settlement Rules,

    2000.

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    (iv) The amounts deposited by the petitioners in

    pursuance of the orders of this Court shall be refunded

    to them.

    84. A copy of the instant order shall be forwarded by

    the Registry to the Chief Secretary for enquiry and

    appropriate action in accordance with law.

    85. Pending application, if any, also stands disposed of.

    (MANOJ KUMAR GUPTA, C.J.)

    (SUBHASH UPADHYAY, J.)

    Dated: 06th August 2026
    NISHANT
    NISHANT Digitally signed by NISHANT KUMAR
    DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND,
    2.5.4.20=ad3fcb5ca64340f5dd0a4c574afa0fd63133605ca57cdc00ec2b7462b452b326,
    postalCode=263001, st=UTTARAKHAND,

    KUMAR
    serialNumber=7E81318F3B1BE7EAAC9370185F7C9C20892BC63A055CFD1961690560487E6
    70C, cn=NISHANT KUMAR
    Date: 2026.08.06 11:15:49 +05’30’

    47



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