By Our Reporter
SHILLONG, April 12: The East Khasi Hills Wine Dealers’ Welfare Association (EKHWD&WA) on Sunday alleged that the state government failed to implement a directive of the High Court of Meghalaya restoring the profit margin of liquor retailers, weeks after a landmark judgment in their favour.
The association recently won a legal battle against the State Government after challenging provisions under the Meghalaya Excise (Amendment) Rules, 2024, which they argued imposed unfair financial burdens on small retailers.
In its judgment on March 26, a Division Bench comprising Justices HS Thangkhiew and Biswadeep Bhattacharjee struck down a government notification dated September 12, 2025, which had reduced the retailer profit margin from 20% to 15%. The court termed the move arbitrary and in violation of Article 14 of the Constitution of India.
Despite the ruling, the association claimed that the Excise Department has yet to issue a revised price list reflecting the restored 20% margin, forcing retailers to continue operating at a loss.
“We have not seen any action from the authorities even after the court’s clear directive. Retailers are still compelled to sell at a reduced margin, effectively incurring a loss of 5%,” the EKHWD&WA said in a statement.
It stated that the association submitted a reminder to the Commissioner of Excise, urging immediate compliance with the court’s order.
“The delay is in complete contravention of the judgment. The department should have issued a fresh price list immediately upon receiving the order,” the association added.
The litigation also challenged the financial implications of the Integrated Excise Management System (IEMS), a digital track-and-trace mechanism introduced by the state to monitor liquor distribution using QR-coded holograms.
While the court upheld the IEMS as a valid policy measure, it raised concerns over its funding structure, noting that the implementation cost at 4-5% per bottle was being passed on to retailers.
The bench observed that while retailer margins were being reduced, other stakeholders, such as Central Bonded Warehouses and Bonded Warehouses, continued to receive commissions of 6% and 8% respectively, without any cuts.
“The court has clearly stated that the burden of such systems cannot be unfairly transferred to retailers. Yet, the government’s inaction suggests otherwise,” the EKHWD&WA said.
The association further alleged that the delay raises concerns over whether the interests of a single private entity linked to the IEMS implementation are being prioritised over nearly 700 wine traders across the state.
The association warned that continued non-compliance could force it to seek further legal remedies for the enforcement of the court’s order.
