United Spirits Limited has received interim relief from the Supreme Court in a protracted legal dispute regarding water charges. The company was directed to deposit INR 50 crore with the Court, rather than the Water Resources Department, to prevent any coercive action. This development follows a INR 441.95 crore demand contested by the company. Management maintains confidence in its legal position and does not anticipate any material financial implications arising from this ongoing litigation.
Background of the Water Charges Dispute
The current legal challenge stems from a INR 441.95 crore demand issued by the Water Resources Department (WRD) on March 20, 2026. This demand covered water usage charges for the period spanning November 2018 to February 2026. The company contested this figure, citing that the calculation method violated a previous judgment from the Bombay High Court dated September 26, 2025, and that the department failed to adhere to the Principles of Natural Justice during the assessment process.
Supreme Court Intervention
Following a Bombay High Court order on May 5, 2026, which did not grant the requested interim protection, the company filed a Special Leave Petition (SLP) with the Supreme Court of India. In a significant development on May 12, 2026, the Supreme Court ordered the company to deposit INR 50 crore with the Court within four weeks. As a result, the WRD is currently restrained from taking any coercive action against the company while the matter remains under judicial review.
Financial Outlook
Despite the complexity of the litigation and the ongoing demand, the company has completed an internal risk assessment. Based on advice from external legal counsel, management continues to maintain that its case is strong on its merits. Consequently, the company does not expect this legal matter to result in any material financial implications or significant disruption to its operational activities.
Source: BSE
