Case Note & Summary
The present writ petition was filed before the High Court of Judicature at Bombay under its civil appellate jurisdiction by Karan Distilleries Pvt. Ltd., seeking a direction to the State of Maharashtra and its excise authorities to grant a special subsidy or incentive of Rs. 10 per bulk litre of alcohol produced from grain, as per the policy notified by Government Resolution dated 8 June 2007. The petitioner contended that it had taken over a sick grain-based distillery in 2003 through a SICOM auction and had been manufacturing grain alcohol from jowar, with production levels at approximately 50 per cent of its annual capacity from the years 2006-07. The State Government introduced the said Resolution to promote and encourage new distilleries producing alcohol from substances other than molasses, announcing a subsidy of Rs. 10 per bulk litre for units situated in ‘D’ or ‘D+’ areas, provided the distilleries had commenced operations by the end of 2009. The petitioner claimed an amount of Rs. 11.06 Crores as accrued subsidy and sought to challenge an order dated 24 November 2021 by which its application for the subsidy had been rejected. The sole substantive prayers in the amended petition were to quash the rejection order and to direct the respondents to grant the subsidy along with interest from 2012 till realization. The Court issued Rule, with respondents waiving service, and by consent, the matter was heard finally on 28 April 2025, with judgment pronounced on 9 May 2025. The extracted text from the judgment provides only the opening factual background and does not include the legal issues framed, the submissions of the parties, the court’s analysis, or the final decision.
Issue of Consideration
WRIT PETITION NO. 10653 OF 2022
Case Details
2025 LawText (BOM) (05) 10
Writ Petition No. 10653 of 2022
G. S. Kulkarni, Advait M. Sethna
Mr. Sanjeev Gorwadkar, Senior Advocate with Mr. Kamlesh Mali and Mr. Dinesh Mali for the Petitioner; Mr. Kedar Dighe, Addl. GP with Ms. Savina Crasto, AGP for State/Respondent Nos.1 to 3.
Karan Distilleries Pvt. Ltd.
1. The State of Maharashtra through the Secretary, State Excise Department, Mantralaya, Mumbai; 2. The Home Department, State of Maharashtra, through the Secretary; 3. The Commissioner, Maharashtra State Excise, Old Custom House, Fort, Mumbai.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition seeking direction to respondents to grant special subsidy/incentive of Rs. 10 per bulk litre of alcohol produced from grain under the State Government’s policy notified on 8 June 2007, and to quash the rejection order dated 24 November 2021.
Remedy Sought
Quashing of impugned rejection order dated 24.11.2021 and direction to grant the grain-based subsidy accrued till 2012 along with interest.
Filing Reason
The petitioner’s application for the subsidy was rejected by the State Government by order dated 24 November 2021.
Issues
Whether the petitioner is entitled to the special subsidy/incentive under the Government Resolution dated 8 June 2007, and whether the rejection order dated 24 November 2021 is valid.
Judgment Excerpts
The petitioner primarily seeks a relief that the respondents be directed to grant a special subsidy/incentive of Rs. 10/- per bulk litre of alcohol produced by it, under the State Government’s policy notified in the Government Resolution dated 08 June 2007, provided for new units manufacturing grain alcohol. (Para 2)
The State Government issued Government Resolution dated 8 June 2007 setting out conditions, on which a special subsidy/incentive of Rs. 10/- per bulk litre was announced to be granted to units manufacturing grain alcohol which were situated in ‘D’ or ‘D+’ areas. Such policy inter alia provides that those distilleries which were started up to the end of 2009, were entitled to the said subsidy. (Para 6)
Procedural History
Writ petition filed; Rule issued; respondents waive service; by consent of parties, heard finally on 28 April 2025; judgment pronounced on 9 May 2025.
