Summary: United Spirits Limited challenged the Maharashtra Water Resources Department over high water fees for their distillery. The High Court ruled that the fees were not against the law but ordered a review of the charges based on actual water use.
United Spirits Limited, a major liquor manufacturer, filed a legal complaint against the State of Maharashtra's Water Resources Department. They argued that the water fee notices issued were unfair and illegal. The dispute centered around the charges for taking water from the Godavari River for their distillery in Nanded.
The company protested against the water fee orders from 2018 and 2022, claiming they were against the law and violated the Maharashtra Water Resources Regulatory Authority Act (MWRRA Act). They contended that the fees didn't reflect the actual costs of water management as required by law.
"United Spirits Limited claims the water fee orders are beyond the powers of the MWRRA Act, as they ignore the principle of cost recovery."
Judges Manish Pitale and Y.G. Khobragade ruled that the fees were not against the law. However, they noted that the authorities failed to assess how much water was used as a raw material versus for other processes. The court ordered a fresh evaluation of water usage.
"The Maharashtra Water Resources Department must determine the actual proportion of water used as raw material before issuing charges."
The court canceled the previous orders and demand notices, directing the authorities to conduct a thorough investigation and issue new bills. United Spirits is required to deposit Rs.66.50 Crores while the reassessment is underway.
"The exercise shall be completed within three months, ensuring fair and accurate billing for water usage."
