Bombay High Court Quashes ₹236 Crore Water Bill Against United Spirits’ Liquor Unit
Court Orders Fresh Assessment to Distinguish Raw Material Use from Ancillary Water Consumption
The Bombay High Court has set aside demand notices amounting to over ₹236 crore issued by the Maharashtra Water Resources (Irrigation Department) against United Spirits Limited for water charges related to its liquor manufacturing unit. A Division Bench comprising Justices Manish Pitale and YG Khobragade ruled that the authorities erroneously treated the entire water intake from the Godavari river as raw material usage.
While upholding the constitutionality of the Maharashtra Water Resources Regulatory Authority (MWRRA) tariff orders of 2018 and 2022, the Court found the execution flawed, as the authorities failed to ascertain how much water was used as raw material and how much for ancillary processes like washing and cooling.
The Court quashed all demand notices from 2018, including a ₹236.5 crore final demand, but directed United Spirits to deposit ₹66.5 crore within six weeks, based on judicial precedents estimating 65% water usage as raw material in breweries. The Water Resources Department was ordered to conduct a fresh, fair assessment within three months, ensuring natural justice principles are followed. Any excess deposit by the company is to be adjusted against future bills.