Rohit Pawar's firm moves HC against Maharashtra govt's sugarcane levy

Mumbai, Oct 31 (PTI) A firm led by NCP (SP) MLA Rohit Pawar has moved the Bombay High Court, challenging the Maharashtra government's decision to impose a levy on sugarcane crushing for contribution towards the Chief Minister's Relief Fund and two other welfare entities.

A vacation bench of Justice Manjusha Deshpande on Thursday directed Baramati Agro Ltd to deposit 50 per cent of the levy amount under all three heads within three days so that its crushing licence can be processed pending hearing of the petition.

"In the meanwhile, the authority shall process the crushing licence of the petitioner in view of the undertaking given by the petitioner," the court said.

It clarified that if the petition eventually succeeds, the court would be inclined to pass an order to refund the deposited amount with interest.

The court issued notice to the government and other concerned authorities, posting the matter for further hearing on November 13.

The state government has decided to impose Rs 10 per tonne cane crushed, each for contributions towards the Chief Minister's Relief Fund and Gopinath Munde Sugarcane Workers Welfare Corporation, and Rs 5 per tonne towards the Flood Relief Fund.

The plea challenged the October 27 letter issued by the Commissioner of Sugar addressed to all sugar factories informing them about the policy decision taken on September 30 of imposing a levy for the new crushing season 2025-26.

As per the letter, unless the amounts so directed are deposited, a licence for the crushing season 2025-26 shall not be issued to the sugar factories.

Senior counsel Girish Godbole, appearing for Baramati Agro Ltd, submitted to the court that such a conditional issuance of a licence is not only onerous but is also not supported by any legislation.

He informed the court that similar petitions challenging the government's decision have been filed before the court's Kolhapur bench.

The bench was informed that in those pleas, the petitioners agreed to deposit 50 per cent of the contribution pending hearing of their petitions, following which the court directed the Commissioner of Sugar to process the crushing licence of those factories.

Godbole said Baramati Agro Ltd was also ready to deposit 50 per cent of the levy amount under the Chief Minister Relief Fund and the Gopinath Munde Ustod Kamgar Kalyan Mahamandal.

However, the petitioner sought an order staying the third levy of Rs 5 per tonne towards the Flood Relief Fund, as the same was not supported by any executive order or legislation.

Justice Deshpande, however, directed the firm to deposit 50 per cent of the levy amount under all three heads within three days to ensure that its crushing licence for 2025-26 is processed.

The government's decision to impose a levy on sugar factories has drawn sharp criticism from opposition leaders, including Sharad Pawar, who had said the government ought to be helping rain-affected farmers on its own instead of making sugarcane cultivators contribute.

The government has maintained that the measure was necessary to ensure immediate relief to flood-affected families in the Marathwada region, which was severely affected by rains and floods. PTI SP ARU