‘Made in Maharashtra’ liquor policy: Bombay High Court seeks State’s reply

The Maharashtra Government’s ‘Made in Maharashtra’ liquor policy, which mandates bars and permit rooms to stock at least 25% locally manufactured brands, has come under judicial scrutiny after the International Spirits and Wines Association of India (ISWA) moved the Bombay High Court challenging its validity. 

The policy, notified on August 7, 2025, introduces a new category: Maharashtra Made Liquor (MML), with lower excise duty and capped pricing. Eligibility is restricted to producers headquartered in Maharashtra, with at least 25% State-based promoters and no foreign investment. The State says this measure aims to boost local manufacturing and revenue, while addressing market imbalance, where 64% of liquor production in 2024-25 came from just nine license holders linked to ISWA members. 

Appearing for ISWA, senior advocates Darius Khambata and Rohan Shah argued that the mandate violates Article 14 and Article 19(1)(g) of the Constitution by creating an artificial classification and imposing stocking obligations. 

“This is not about promoting choice; it is about compelling businesses to act against market demand,” Mr. Khambata submitted. ISWA represents global liquor majors including Pernod Ricard, Diageo, and Bacardi, which fear the policy will distort competition and restrict consumer choice. 

The State, represented by Advocate General Milind Sathe and Government Pleader Neha Bhide, defended the policy, citing a sharp rise in excise revenue since its rollout. According to its affidavit, collections between July and November 2025 jumped from ₹9,665.64 crore in the previous year to ₹11,299.40 crore, an increase of ₹1,633.76 crore, or 16.9%, compared to a 12% rise before the policy was introduced. 

“This shows positive growth after the introduction of a new policy,” the State said in its filing. A Division Bench of Justices Revati Mohite Dere and Sandesh D. Patil have issued notice to the State and directed it to file its affidavit-in-reply along with the study group report that informed the policy.  

“In the meantime, until the aforesaid petition is heard, the parties are permitted, without prejudice, to take preparatory steps in terms of the Government decision dated August 7, 2025. Needless to state, the petitioner/parties shall not claim any equities,” the order said. The matter is scheduled for hearing on December 23, 2025.