Bombay HC tells Rohit Pawar-led firm to deposit half levy, licence to be issued

The Bombay High Court has directed Baramati Agro Limited, the petitioner in a writ petition challenging the State’s levy on sugarcane crushing, to deposit 50% of the amount under three heads within three working days so that its crushing licence for the 2025-26 season can be processed. 

The order was passed by a vacation bench of Justice Manjusha Deshpande on October 30 and made available on October 31. The petitioner had questioned the legality of the October 27 communication issued by the Commissioner of Sugar, which made payment of the levy a precondition for granting licences. The levy, based on a September 30 policy decision, requires sugar mills to pay ₹10 per tonne of cane crushed each for the Chief Minister’s Relief Fund and the Gopinath Munde Sugarcane Workers Welfare Corporation, and ₹5 per tonne for the Flood Relief Fund. 

Senior counsel Girish Godbole, appearing for the petitioner, submitted that such conditional issuance of licences was “onerous and not supported by any legislation.” While the company was willing to deposit half the amount under the first two heads, it sought a blanket order against the third levy, contending that the Flood Relief Fund contribution lacked any executive or legislative backing. 

After hearing both sides, the court observed, “Considering the challenge raised by the Petitioner and the orders passed by this Court in 2024 at the Kolhapur Bench, it would be appropriate to pass a similar order by directing the Petitioner to deposit 50% of the levy amount under all three heads within three working days in order to ensure processing of their crushing licence for 2025–26.” 

The bench further clarified, “In the meanwhile, the Authority shall process the Crushing Licence of the Petitioner in view of the undertaking given by the Petitioner. It is made clear that if the Petitioner eventually succeeds, this Court would be inclined to pass an order to refund the amount along with reasonable interest. It is also made clear that aforesaid deposit of the Petitioner towards the aforesaid heads is without prejudice to the rights and contentions of the parties.” 

The court issued notice to the respondents, returnable on November 13, and directed the State to file its reply before that date. The AGP Savina R. Crasto waived service of notice and was asked to communicate the order to the Commissioner of Sugar, who must take “immediate steps to issue licence to the Petitioner without waiting for the deposit of amount” since the undertaking has been given.