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 briefing, retailer Shamkamti Diengdoh said the government had introduced the IEMS policy a few months ago and awarded its implementation to C-Tel Infosystem Private Limited, represented by MP Singhania 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 Association challenged the policy before the High Court of Meghalaya through a writ petition.
He said the High Court of Meghalaya, in its judgment delivered on March 26, observed that while the government could introduce policies, it should not interfere with the 20 per cent profit margin of retailers.
He further stated that the government later approached the Supreme Court through a Special Leave Petition, but withdrew the matter during the first hearing held on April 27.
Diengdoh further alleged that despite the legal developments, the government 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 expressed concern over the financial impact of the revised policy.
Diengdoh informed retailers contribute revenue to the state through taxes on diesel, petrol and Indian Made Foreign Liquor (IMFL), and alleged that reducing profit margins would affect business sustainability, self-employed youths and future entrepreneurs.
He further alleged that the present MDA government was favouring selected firms and businessmen in the award of contracts and implementation of policies.
Diengdoh also claimed that the revised policy was affecting the functioning of the excise sector and creating difficulties for retailers across the state.
