Bombay HC examines ‘Made in Maharashtra’ liquor policy

The Maharashtra government’s recently introduced ‘Made in Maharashtra’ liquor policy has come under judicial review after the International Spirits and Wines Association of India (ISWAI) filed a petition in the Bombay High Court questioning its constitutional validity.

Notified on August 7, 2025, the policy requires bars and permit rooms across the state to ensure that at least 25 percent of their liquor inventory consists of locally manufactured brands. It also creates a new classification, Maharashtra Made Liquor, which benefits from lower excise duties and regulated pricing. To qualify under this category, manufacturers must be headquartered in Maharashtra, have a minimum of 25 percent promoters based in the state, and operate without any foreign investment.

The state government has stated that the policy is designed to strengthen local manufacturing, correct market concentration and increase revenue. It pointed out that during 2024–25 nearly 64 percent of liquor production in Maharashtra was accounted for by just nine licence holders, many of whom are associated with ISWAI member companies.

Representing ISWAI, senior advocates Darius Khambata and Rohan Shah argued before the court that the mandatory stocking requirement creates an artificial classification and places unreasonable restrictions on businesses. The association, which represents global spirits companies like Pernod Ricard, Diageo and Bacardi, has expressed concerns that the policy could distort competition and limit consumer choice.

Defending the policy, Advocate General Milind Sathe and Government Pleader Neha Bhide cited a significant rise in excise revenue since the policy’s implementation. According to the state’s affidavit, excise collections between July and November 2025 rose to ₹11,299.40 crore from ₹9,665.64 crore in the same period last year, reflecting an increase of ₹1,633.76 crore, or 16.9 percent, compared with a 12 percent growth rate prior to the policy.

A Division Bench comprising Justices Revati Mohite Dere and Sandesh D. Patil has issued notice and directed the state to submit its affidavit-in-reply along with the study group report that formed the basis of the policy. The court has allowed parties to take preparatory steps under the policy pending the hearing, which is scheduled for December 23, 2025.