Hotel and Restaurant Association condemns composite fee structure in Delhi govt’s new excise policy

By: |
November 16, 2021 10:48 PM

Under the new excise policy of Delhi, which will come into effect from Wednesday, there is a complete disproportion of the fees for hotels.

Hotel and Restaurant Association of Northern India on Tuesday condemned the composite fee structure introduced in the new excise policy of Delhi saying many 5-star hotels in the Capital desire to declassify or get the rating changed to 4-star due to the proposed fee of Rs 1 crore per annum.

Under the new excise policy of Delhi, which will come into effect from Wednesday, there is a complete disproportion of the fees for hotels, Hotel and Restaurant Association of Northern India (HRANI) Secretary-General Renu Thapliyal said in a statement.

For hotels up to 2-star, the fee is Rs 10 lakh and for 3 and 4-star hotels, it is Rs 15 lakh per food and beverages (F&B) outlet, she said adding while for the new L-16 license for 5-star and above it is a composite license of Rs 1 crore.
Condemning the composite fee structure, Thapliyal said it will lead to “a reduced number of 5-star hotels (in Delhi) as many hotels desire to declassify or get their rating changed to 4-star due to the newly introduced composite fee structure of Rs 1 crore per annum”.

Moreover, the mandate of 24×7 licences for the service of liquor has also been included and enforced in the composite fee without considering the locality/area or demand of 24×7 liquor services and choice of licensee unit.
She lamented that despite a number of representations of Deputy Chief Minister Manish Sisodia, who also holds the finance portfolio and various meetings with stakeholders and delegation from the association with the Delhi excise department officials to review the policy, there has been no positive response.

HRANI also said according to its members, under the new policy, guests who are consumers and wish to get liquor served in their functions or events will have to also take a temporary license of Rs 50,000 additionally and purchase the liquor from the assigned vendor. “Such a policy will lead to a shift in banquet events outside Delhi,” it said adding the implementation of the policy should be extended by one month for hotels.

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