Bombay High Court Grants Relief to Sugar Factories Over State Levies Dispute

The Bombay High Court intervened to halt Maharashtra's directive demanding sugar factories make mandatory contributions to relief funds for license approval. The court emphasized the state's lack of legal authority to enforce such levies and demanded a halt pending further legal proceedings.

The Bombay High Court has issued an interim order favoring several sugar factories in Maharashtra by suspending the state government's directive, which mandates contributions to various relief funds including the Chief Minister's Relief Fund and the State Flood Relief Fund, as a precondition for issuing crushing licenses.

The directive had prompted key industry players such as Baramati Agro Limited and Athni Sugars Limited, to challenge the measures in court, citing their illegality. The petitioners argued the levies were devoid of statutory backing and were imposed contrary to established legal norms.

In light of the state's inability to provide a valid rebuttal, the court noted that the government lacked the legal authority to enforce these contributions, thereby granting the petitioners temporary relief and suspending the directive until further legal resolution.

(With inputs from agencies.)