MUMBAI: Slamming Maharashtra government’s decision of extending grants to 23 winery units for the manufacture of grain-based alcohol,  the Bombay High Court on Wednesday stayed the disbursement of funds for such units.

The court has asked the state to define which one of the two - food grains or wine - is an essential commodity according to the government. The state will have to file its reply within a month. 

The proposal to produce premium liquor from grains like maize, jowar and bajra was mooted by the excise ministry headed by Ganesh Naik. The proposal recently got a cabinet nod despite reservations expressed by chief minister Ashok Chavan. Of the 45 units proposed to get license only 25 were approved. Letter of Intent has been issued in case of three units.

A division bench comprising of acting Chief Justice J N Patel and Justice B R Gavai, while hearing the petition filed by Chetan Kamble, who challenged the decision of the government to extend grants to the liquor producing units, said that the government first needs to clarify which of the two - food grains or liquor - is an essential commodity according to them.

Staying the disbursement of funds for these units, Justice Patel noted that it seemed to be the policy of the government to produce more liquor than food grains. The court also asked the state to explain whether such expenditure was really essential.

According to the petitioner, the grants for producing liquor would increase the burden on the state exchequer by 200 per cent. "Over 200 per cent financial aid is extended from the capital investment for producing liquor from food grains. Since it is public money it could be misused by the beneficiaries of the project," Advocate Uday Varunjkar told the court. Varunjkar also told the court that most of the units were related to politicians.

The project was initially mooted during the previous Democratic Front, which was headed by Vilasrao Deshmukh who is now the Union industries minister.

FOOD OR WINE

The court has asked the state to define which one of the two - food grains or wine - is an essential commodity according to the government