United Spirits Limited Challenges Water Charges Demand Before Supreme Court
United Spirits Limited is contesting a demand for water charges, which arose from Maharashtra's Water Resources Department (WRD). The dispute is before the Bombay High Court and has reached the Supreme Court, following the company's challenge to a demand letter from the WRD.The litigation involves multiple state bodies, including the State of Maharashtra, the Maharashtra Water Resources Regulatory Authority (MWRRA), and the Water Resources Department (WRD), Government of Maharashtra.
The core dispute stems from a letter issued by the WRD dated March 20, 2026 (received on March 24, 2026), which computed a total due payable of INR 441.95 crore towards water charges covering the period from November 2018 to February 2026. This demand was calculated after adjusting/setting off a deposit of INR 66.50 crore previously made by the company.
The company challenged the demand, arguing that the WRD failed to follow the principles of Natural Justice, as the company was not granted a hearing, and the WRD failed to consider material placed on record by the company. The company filed a Writ Petition before the Bombay High Court, asserting that the letter and the basis of computation were contrary to and in violation of an earlier judgment dated September 26, 2025.
The matter progressed to the Supreme Court of India, where the company filed a Special Leave Petition (SLP) seeking interim protection against any coercive action by the WRD. By order dated May 12, 2026, the Supreme Court granted United Spirits Limited four weeks to deposit INR 50 Crores with the Court, rather than with the WRD, as an interim measure.
Litigation and Financial Summary
The material details of the litigation and the company's assessment are outlined below:| Detail | Particulars |
|---|---|
| Opposing Parties | 1. State of Maharashtra. 2. Maharashtra Water Resources Regulatory Authority (MWRRA). 3. Water Resources Department (WRD), Government of Maharashtra. 4. Sub-Divisional Engineer, Water Resources Department. 5. Executive Engineer, Water Resources Department. |
| Forum | The High Court of Bombay ('Bombay HC') |
| Total Demand Computed | INR 441.95 crore |
| Deposit Adjusted/Set Off | INR 66.50 crore |
| Supreme Court Interim Action | Granted four weeks to deposit INR 50 Crores with the Court. |
The company advised that based on its risk assessment process, it believes it has a good case on merits and accordingly does not expect any material financial implications from the matter. The company stated that the expected financial implication was nil.
UNITDSPR Stock Price Movement
On Friday, United Spirits Limited shares edged higher, concluding the session at ₹1320.7, and gaining 3.34% from the previous close. The equity traded on robust volume of 3.85 million shares, signaling strong positive momentum throughout the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.