The Supreme Court on Tuesday, June 30, ordered maintenance of status quo on ethanol allocation for Ethanol Supply Year (ESY) 2025-26.
The apex court has temporarily stayed the effect of the Karnataka High Court order requiring oil marketing companies (OMCs) to reconsider the allocation made to a dedicated ethanol manufacturer, IANS reported.
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It was hearing a petition filed by an oil marketing company, which claimed that the High Court’s verdict could destablise the national policy of 20 per cent ethanol blending for petrol.
The interim order was passed by a bench of Justices MM Sundresh and Sheel Nagu, while hearing the special leave petition (SLP) filed by Bharat Petroleum Corporation Limited (BPCL).
While issuing notice to the respondents, the Supreme Court directed that the existing allocation process remain undisturbed till the next date of hearing. “Issue notice. List on reopening. Till the next date of hearing, there shall be status quo,” the Bench said.
This comes after Attorney General (AG) R. Venkataramani, while appearing for BPCL, contended that the High Court’s order to reconsider the representation of VINP Distilleries and Sugars Pvt. Ltd. seeking enhancement of its ethanol allocation can destabilise central government’s ethanol blending policy and disrupt the ongoing procurement process.
The Attorney General mentioned before the court that ethanol supply contracts for ESY 2025-26 had already been finalised in October last year, adding that supplies under the contracts were underway.
Further, it was argued that no company could claim a legal entitlement to a higher ethanol quota.