Bombay High Court Grants Interim Relief to Panchganga Sugar Mill
The Bombay High Court has temporarily lifted payment requirements for a sugarcane crushing license, benefiting Panchganga Sugar and Power Private Limited.
The Bombay High Court has stayed mandatory advance payments for crushing licenses.
Panchganga Sugar and Power challenged the Maharashtra government's payment conditions.
Fourteen private mills have received crushing licenses for the 2026-27 season.
In a significant ruling, the Aurangabad bench of the Bombay High Court has provided interim relief to Panchganga Sugar and Power Private Limited by suspending the Maharashtra government's mandate for advance payments related to fund deductions necessary for obtaining a sugarcane crushing license. This decision, made on Friday, allows the company to proceed with its license application without the immediate burden of these payments.
The controversy originated when the state government's Ministerial Committee imposed several financial contributions as prerequisites for mills seeking crushing licenses for the upcoming 2026-27 season. These contributions included payments to the Chief Minister’s Assistance Fund, the Loknete Gopinath Munde Sugarcane Crushing Workers Welfare Corporation, and other industry-related funds.
Panchganga Sugar and Power, located in Chhatrapati Sambhajinagar, contested these conditions in court under Writ Petition No. 13894/2026. The bench, comprising Justice Nitin B. Suryavanshi and Justice Abasaheb D. Shinde, ruled that withholding the crushing license solely due to unpaid deductions was unjustified. The interim order has provided a temporary reprieve while the court deliberates on the final decision.
Under the committee's stipulations, mills were required to pay Rs 10 per tonne to the Chief Minister’s Relief Fund and an additional Rs 10 per tonne to the Loknete Gopinath Munde Fund. Other contributions included Rs 1 per tonne for the Vasantdada Sugar Institute and the Maharashtra State Cooperative Sugar Mills Association, along with a subscription fee for maintenance and repair funds.
In a related development, the Sugar Commissionerate has issued online crushing licenses to 14 private sugar factories for the 2026-27 season, including units from Baramati Agro Limited and the Lokmangal Group. This issuance is expected to facilitate the mills in preparing for the upcoming crushing season, while the High Court's interim order continues to provide relief to Panchganga Sugar amidst ongoing legal proceedings.
