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This is an archive article published on January 7, 2010

Court stays subsidy on production of liquor from grains

In a setback to the government which is promoting production of liquor/wine made from food grains,the Bombay High Court on Wednesday granted a stay to disbursal of subsidy to the manufacturers.

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In a setback to the government which is promoting production of liquor/wine made from food grains,the Bombay High Court on Wednesday granted a stay to disbursal of subsidy to the manufacturers.

The High Court’s directive came on a PIL filed by Chetan Kamble of Bhimshakti Pratishthan contending that use of food grains for wine production will lead to inflation and shortages.

According to petitioner’s lawyer Uday Warunjikar,the total amount which state was ready to disburse is over a thousand crore rupees.

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Division bench of Justice J N Patel and Justice B R Gavai stayed the disbursal of the subsidy,which runs up to 200 per cent of capital investment by the manufacturer and directed the government to clarify its policy by February 4.

“What is essential commodity for you? Liquor or food grains?” the judges asked during the hearing. The court also commented that state’s finances seem to be “sound”,looking at amount of subsidy.

According to Warunjikar,government issued letter of intentions to 23 persons and the subsidy amount in each case comes to at least Rs 50 crore.

Those whose projects have got approval include Vilasrao Deshmukh’s son Amit Deshmukh,Gopinath Munde’s daughter Pankaja,NCP leaders Govindrao Adik and Vimal Mundada,the petition alleges.

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