Bombay High Court Quashes ₹236 Crore Water Charges for United Spirits
The Bombay High Court has quashed demand notices totalling over ₹236 crore issued to United Spirits Limited for water charges. The Court ruled that authorities wrongly calculated the water usage for liquor manufacturing, stressing the principles of natural justice must be followed.
United Spirits challenged the demand notices, arguing that only a fraction of its water use was as raw material for liquor manufacturing. The Court agreed, stating that authorities failed to determine the actual water usage for raw material and ancillary processes. The Court observed that all water taken from Godavari river was wrongly treated as raw material for liquor manufacturing.
The Court ordered a fresh assessment of water use within three months. It directed United Spirits to deposit ₹66.5 crore with the Water Resources Department within six weeks. Any excess deposit will be adjusted against future bills. However, the Court rejected United Spirits' plea to strike down the 2018 and 2022 tariff orders but faulted authorities for incorrect implementation.
The Bombay High Court has set aside the demand notices, ordering a fresh assessment of water usage at United Spirits' unit. United Spirits has been directed to make a partial deposit, with any excess to be adjusted against future bills. The Court's decision highlights the importance of accurate calculation and implementation of water charges.
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