With the financial year coming to an end today, the Election Commission has asked state governments to avoid granting fresh licences for liquor vends till the time polling in respective states is completed.
Referring to various requests regarding permission to make allotment of liquor vends in view of the Model Code of Conduct, the EC said where state governments are in position to make an interim arrangement beyond the current financial year, they should extend the contract under existing terms and conditions till polling in that particular state ends.
But, at the same time, the EC made it clear that where excise laws do not permit continuation of existing contracts beyond their expiry, then fresh liquor vend licences can be issued following "normal practice" adopted in the previous year "strictly in accordance with the existing laws".
The poll panel said it had made the issue clear in March, 2009 but following various requests from states, it was merely reiterating it previous ruling.
Excise is a major source of revenue for many states. There have been allegations that liquor vend contractors often fund poll campaign of various candidates.
