Concealment of a conviction under the Excise Act during the license application process justifies the cancellation of the allotment and forfeiture of deposits; the benefit of probation does not nullify the conviction for the purpose of statutory eligibility.

Order

By way of filing the present civil writ petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs:-

(i) The impugned order dated 01.05.32017 (Annex- 5) passed by Excise Commissioner, Udaipur may kindly be ordered to be quashed and set aside.

(ii) The respondents may kindly be directed to refund the amount of Rs.16,93,300/-” with interest of 12% per annum from the dated of depositing the same to the petitioner.

(iii) Any other appropriate order or direction which this Hon’ble Court deems fit and proper may kindly be passed in favour of the petitioner. ….”

Brief facts of the case are that the petitioner participated in the draw of lots conducted by the respondents for allotment of a liquor shop licence at Village Khairabad (Group No. 85). After being declared successful in the draw of lots, the petitioner deposited a sum of ₹2,28,300/- as security deposit with the respondents. However, before the shop could be allotted to the petitioner, a complaint came to be filed against him alleging, inter alia, that he had been convicted for an offence under the Excise Act and, therefore, as per the prevailing policy governing the issuance of liquor shop licences, the shop in question could not be allotted to him. Upon verification, the contents of the complaint were found to be correct. Consequently, the District Excise Officer, Bhilwara, vide order dated 30.03.2017, revoked the grant of liquor shop licence issued in favour of the petitioner and also forfeited a sum of ₹2,60,910/- deposited by him as security deposit.

As per the petitioner, he was not aware of the order cancelling the allotment of the liquor shop in his favour and, therefore, vide two different challans dated 23.03.2017, he deposited a further sum of ₹14,65,000/- with the respondents.

Being aggrieved by the order of the District Excise Officer revoking the licence, the petitioner preferred an appeal before the Excise Commissioner, wherein, in the alternative, it was prayed that in case the petitioner was found ineligible for allotment of the shop, at least the amount of ₹14,65,000/- deposited by him subsequent to the cancellation order dated 30.03.2017 be refunded. The appeal filed by the petitioner came to be rejected by the appellate authority on the ground that, at the time of participating in the draw of lots, the petitioner had concealed the fact of his conviction for offences under Section 16/54 of the Excise Act.

The petitioner has challenged the order dated 30.03.2017 passed by respondent No. 2 mainly on two grounds. Firstly, that the amount of ₹14,65,000/- deposited by the petitioner subsequent to cancellation of the liquor shop licence could not have been forfeited, as the same was deposited in ignorance of the cancellation order dated 30.03.2017 passed by the District Excise Officer, Bhilwara. Secondly, that although the petitioner was prosecuted and convicted for an offence under Section 16/54 of the Excise Act, he was granted the benefit of probation by the competent criminal court and, therefore, is entitled to an opportunity for rehabilitation and reformation in society by way of allotment of a liquor shop.

Heard.

Having heard learned counsel for the petitioner, this Court finds that at the time of participating in the draw of lots for allotment of a liquor shop licence at Village Khairabad (Group No. 85), the petitioner intentionally concealed the factum of registration of FIR No. 126/2011 at Police Station Hamirgarh, District Bhilwara, for an offence under Section 16/54 of the Rajasthan Excise Act. The fact regarding his conviction by the competent criminal court was also deliberately concealed.

Section 34(d) of the Rajasthan Excise Act and Rules 76(b) and 76(c) of the Rajasthan Excise Rules clearly empower the authorities to cancel the allotment of a liquor shop if the same has been made in favour of a person convicted under the Excise Act and to confiscate the dep