Tag Archives: Regulatory Updates

Bombay High Court Directs Maharashtra to Open Portal for Label Registration

The Bombay High Court has directed the Government of Maharashtra to open the excise department portal for online registration of labels for all alcobev companies, a request filed by the advocates representing the International Spirits and Wines Association of India (ISWAI). This is a temporary directive, pending the hearing of the case filed by ISWAI against the State Government. The next hearing of the case is on December 16. ISWAI went to court, seeking, among other issues, a level playing field in the manufacture of ‘Maharashtra Made Liquor’ (MML).
The Court on November 24 had directed the Government representatives to open the portal for any alcobev player from within the state. However, till December 9, the excise department had not facilitated that process, forcing the Court to take notice of that and cautioning the government. A two-judge bench headed by Senior Judge Revathi Mohite Dere asked why the excise department had not followed the court directive and cautioned the government that it would take serious notice of the lapse.Sources in the Excise Department clarified that the portal is open for anyone to file an application for registering their labels, but it is the department’s prerogative to accept or reject the application.
Only the application for label registration will be accepted once the applicant fits in into the Guideline criteria set by the government. As of now 13 manufacturers are eligible and got the permission to produce MML.

The ISWAI contention has been that the process for companies to get their labels registered is time-consuming, not less than 45 days, and with the court case going on there would be further delay. This, the ISWAI source mentioned would give undue advantage to the eight players who have been granted licenses to set up MML units. They are already marketing MML in the price band of Rs. 160 and Rs. 205 where brand really does not matter to a particular segment of consumers.
As of now, reports from the ground indicate that the products launched under the MML category are doing ‘extremely well’ with product quality being good. Some of the MML players or the consultants who are guiding them come with enormous experience in the liquor industry, either having worked in major companies or having bottling plants or ethanol units. Some of them also own retail shops across Maharashtra where they can give good shelf position for their products.
The ISWAI source said that many of the players were ‘commodity players’ and not ‘brand players’ and they would flood the market having a good lead over the established companies. The source acknowledged that the MML players had drafted consultants who have had strong background in the liquor business and are helping the licensees to set up the businesses, thus giving ‘undue advantage’ to them.
ISWAI went to the court stating that some domestic and international players were producing brands in Maharashtra and selling exclusively in the state and hence should be considered a local player, a criteria to get MML license.
In mid-2025, the Maharashtra government introduced policy changes to incentivise local investment. It brought in the MML category, to include grain-based spirits produced exclusively by local manufacturers. The tax rate for MML is 270 per cent with zero foreign investment/ownership. The government believes that this will spur the local industry.
ISWAI then filed a lawsuit against the Maharashtra government, challenging the sharp hike in excise duty on premium affordable liquor brands and also for exclusion of brands of major players such as Diageo India and Pernod Ricard India from the newly-created lower tax category of MML. ISWAI is represented by Darius Khambatta and Rohan Shah.
The court also asked the government lawyer why the report of the Varsha Nair Committee was not submitted earlier on MML. The report highlights certain salient points to encourage those distilleries which are closed or underutilised in Maharashtra to produce cheap liquor. The report added that this would generate additional revenue to the excise department as well as generate employment provided it is made in Maharashtra for distribution in Maharashtra. It also prescribes certain minimum shareholding pattern for owners.

So far, the department has approved 13 licenses and many more are pending. Companies like Radico Khaitan; Diageo India; Pernod Ricard India and some more are keen on jumping on to this bandwagon to produce economy liquor priced between Rs.160 and Rs.205 for the Maharashtra consumers even while their focus is on premium brands. These companies could launch similar products in this price range with some brand extensions and so on.
The State government is insisting that the policy changes will fetch in more revenue, encourage local industry and create new jobs. MML category is expected to fetch additional excise revenue of Rs. 3,000 crores.