United Spirits Owes ₹345.45 Cr in Water Charges in Maharashtra

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Synopsis:

United Spirits Ltd, owned by Diageo, faces a notice demanding ₹345.45 crore in water charge arrears from Maharashtra's Water Resources Department. The company disputes the tariff, with the matter currently subjudice in the Bombay High Court.

United Spirits News Today

United Spirits Ltd (USL), a subsidiary of British alcoholic beverage company Diageo, has been issued a notice by the Water Resources Department of Maharashtra, demanding payment of water charge arrears amounting to ₹345.45 crore.

Additional Read: United Spirits Limited Share Price

Notice Details

The notice, issued by the Water Resources Department, specifically targets USL's Nanded unit and is grounded in Section 49(J) of the Maharashtra Irrigation Act, 1976. It stipulates that the arrears, accumulated from November 2018 to April 2024, must be settled within seven days of receipt.

Legal Response and Dispute

USL has promptly responded by filing a writ petition before the Bombay High Court, contesting the higher tariff imposed on its Nanded unit. As the matter is now subjudice, the company is in the process of evaluating its next steps in response to the notice.

Financial Impact and Company Response

Despite the severity of the notice, USL reassures stakeholders that it does not foresee any additional financial implications beyond what has already been accounted for or disclosed as contingent liabilities in its financial statements. The delay in addressing the notice stems from the thorough evaluation of its implications.

Key Takeaways

In summary, United Spirits Ltd faces a substantial financial claim from the Maharashtra government, challenging water charge arrears for its Nanded unit. The company's legal dispute and ongoing evaluation underscore its commitment to addressing the issue effectively while safeguarding its financial interests.

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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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