United Spirits Limited (USL) secured a significant courtroom success as the Bombay High Court set aside Rs. 443 crore in water charge demands raised by Maharashtra's Water Resources Department (WRD). The judgment marks a pivotal turn in the long-standing litigation over water usage fees for USL’s distillery operations.
Key Highlights:
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On September 26, 2025, the High Court quashed all water charge demands raised till date and instructed WRD to reassess the split between water used as raw material and for other processes.
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The court mandated fresh bills be issued covering the period from November 2018 in the next three months, ensuring a fair and justified billing process.
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United Spirits was ordered to submit an interim deposit of Rs. 66.50 crore, which will be adjusted against the reconciled bills.
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The court criticized WRD for previously not differentiating water usage correctly, which led to excessive charges without proper inquiry.
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USL believes that it has a strong case and expects no significant financial impact from this ruling, based on its risk assessment.
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The disclosure of this judgment was delayed due to the company’s internal evaluation of the court’s detailed order and its implications.
This verdict not only relieves United Spirits from a hefty financial burden but also calls for transparent water charge assessment, potentially setting a precedent for industrial water billing in Maharashtra. The company is currently evaluating further legal steps, while stakeholders await the reconciled water bills and future developments.
Source: The Indian Express, Lokmat Tmes