The Competition Commission of India (CCI) has directed three major liquor trade associations in Maharashtra to immediately cease and desist from anti-competitive practices, following findings that their conduct violated key provisions of the Competition Act, 2002.
In an order issued on 11 December 2025 under Section 27 of the Act, the CCI held that the Maharashtra Wine Merchants Association, the Pune District Wine Merchants Association and the Association of Progressive Liquor Vendors engaged in anti-competitive behaviour contrary to Sections 3(3)(a) and 3(3)(b), read with Section 3(1).
The case arose from information filed under Section 19(1)(a), alleging that the associations collectively imposed conditions on manufacturers, distributors and retailers of alcoholic beverages. These conditions included fixed retail margins, mandatory terms for new product launch schemes, transportation and delivery requirements, cash discounts, credit periods, launch fees, donations and other commercial stipulations.
Maharashtra’s liquor trade is a large, tightly regulated market currently undergoing significant shifts. The state has introduced “Maharashtra Made Liquor” (MML), a new grain-based, locally produced category aimed at boosting state revenue, revitalising domestic manufacturing and providing a more affordable alternative to Indian Made Foreign Liquor through lower excise duties.
The market faces regulatory challenges such as new rules requiring housing society consent for liquor shops and concerns over anti-competitive conduct by trade associations. These developments form part of Maharashtra’s broader efforts to modernise its excise policy and tighten market oversight.
Based on the evidence, the Commission found that the associations had issued circulars, emails and other communications prescribing or influencing pricing, margins, discounts, payment terms, transportation charges and other commercial terms that should be independently determined by market participants. The CCI also held that their practice of requiring alcoholic-beverage manufacturers to obtain mandatory no-objection certificates (NOCs) before launching new products further distorted competition.
The Commission concluded that these practices amounted to horizontal coordination in violation of Sections 3(3)(a) and 3(3)(b), which prohibit agreements that directly or indirectly determine purchase or sale prices or limit or control supply, distribution or provision of services. Each finding was assessed in conjunction with Section 3(1), which bars agreements that cause or are likely to cause an appreciable adverse effect on competition.
In addition to issuing cease-and-desist directions, the CCI found office-bearers of the implicated associations individually liable under Section 48 of the Act, which provides for penalties on individuals responsible for the conduct of a contravening association.