India, May 28 -- The Gurugram excise department has launched an inquiry into allegations that liquor vends in the city are flouting pricing norms-by undercutting the minimum retail sale price (MRSP) for alcoholic beverages and overcharging bars and pubs well beyond permissible limits.

Officials said any violations of MRSP norms may indicate value-added tax (VAT) evasion and raise concerns about the sale of potentially substandard or unauthorised liquor in the market. Social activists and pub owners have also alleged the existence of a parallel, unregulated pricing system.

MRSP, under Haryana's excise policy, is the mandatory floor price for alcoholic beverages-below which no sales are allowed under any circumstances. Such sale not only ...