Bacardi, United Spirits move HC against Maharashtra liquor policy

United Spirits Ltd, Bacardi and John Distillers have moved the Bombay High Court challenging a Maharashtra government policy that they say unfairly favours select liquor manufacturers, escalating tensions between global spirits makers and one of India’s largest alcohol markets.

In a writ petition, these companies have sought to quash a government resolution issued on August 7, 2025, arguing that it creates a “preferential class” of potable liquor licence (PLL) holders by allowing only a few to manufacture Maharashtra Made Liquor (MML), while excluding others, including itself.

The division bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad is set to hear the case in due course.


They contend that the classification lacks any “intelligible differentia” and fails the constitutional test of reasonable classification. It argues that the policy has no rational link to the state’s stated objectives of boosting employment, attracting investment, improving distillery capacity utilisation, and increasing excise revenues.

The genesis of the dispute lies in Maharashtra’s broader push to overhaul its liquor policy and raise excise collections. Earlier in 2025, the state approved a series of measures, including higher duties on Indian-made foreign liquor (IMFL), changes to pricing formulas, and the introduction of a new MML category.

Maharashtra has sharply raised excise duties on Indian-made foreign liquor (IMFL), leading to a substantial increase in retail prices for consumers. Duties on country liquor and imported premium spirits were also raised, while the excise duty on beer and wine remained unchanged.

A committee set up by the state had recommended steps to boost revenue and align with best practices across states, culminating in multiple notifications in July 2025 that defined MML, set pricing rules, and fixed duty rates.

The government has defended the regime in an affidavit filed in this petition (above), describing it as a vital tool for promoting local industry and reviving idle manufacturing capacity. State officials previously reported a 17% jump in excise revenue between July and November 2025, attributing the growth to the new duty revisions and the MML rollout.

This latest round of petitions follows a similar challenge by the International Spirits and Wine Association of India (ISWA). The organisation includes Pernod Ricard, Diageo and Bacardi, among others, and the case was filed last year, in which the high court has already permitted preparatory steps for the MML rollout in November 2025, subject to the outcome of the litigation.