Chandigarh, April 9 -- Amid allegations of cartelisation and policy violations in the allotment of the liquor vends for the 2025-26 financial year, a fresh controversy has erupted with the UT excise and taxation department sealing 42 out of the 96 vends in the city over non-submission of bank guarantees to the tune of Rs.33 crore.

The allotees are required to submit their bank guarantees -- equivalent to 15% of the licence fee -- within seven working days of the notification of allotment, as per Clause 21 of the UT Excise Policy. Failure to do so results in the cancellation of the allotment and forfeiture of the earnest money and security deposit. The vends were allotted on March 21.

One of the reasons being cited for non-submission of ...