Delhi government amended excise policy, increased storage limit

The Delhi Government has amended its excise policy by notifying changes in the Delhi Excise Rules, 2010, which include a significant increase in the limits of storage and possession for special denatured spirit and expansion of the provisions governing sacred liquor for ecclesiastical use.

According to a notification issued by the Finance Department on December 22, 2025, the amendments have been made under Section 81(1) of the Delhi Excise Act, 2009, with the approval of the Lieutenant Governor of National Capital Territory of Delhi.

The changes will come into force from the date of their publication in the Official Gazette.

As part of the amendment to Form P-6, which regulates permits relating to special denatured spirits under Rules 33 and 78, the maximum quantity that can be stored in the licensed premises at any time has been increased from 6,744 kilolitres to 15,000 kilolitres.

The annual authorized possession limit for permit holders has almost doubled, from 64,000 kilolitres to 1,20,000 kilolitres.

The notification also amends Rule 20 of the Delhi Excise Rules, 2010, thereby expanding the scope of permission granted for sacred liquor.

Under the amended provision, the Bishop of Delhi will now be allowed to purchase or import, transport and possess duty-free sacred wine up to 4,000 liters annually through a single permit or multiple permits.

Previously, the rule permitted the purchase, transportation, and possession of up to 91 liters of sacred wine, for actual church use only.

The amended rules allow sourcing from authorized distilleries located anywhere in India, subject to the approval of the Excise Commissioner.

Delhi’s excise duty structure is under scrutiny after the Aam Aadmi Party government withdrew its liquor policy for 2021-22 following a CBI and Enforcement Directorate investigation into alleged irregularities. Following the rollback, capital returned to the previously government-controlled retail model.

Since then, changes in the excise duty structure have been largely made through rule amendments and administrative notifications, with the Lieutenant Governor playing a central role in approvals under the Delhi Excise Act.