Plea in Supreme Court against Kerala government's preferential treatment of Jawan Rum

The Supreme Court on Thursday issued notice on a plea by liquor industry bodies challenging the National Company Law Appellate Tribunal's (NCLAT) decision to clear the Kerala State Beverages Corporation (KSBC) of allegations that it favours the State-owned Jawan Rum brand [Confederation of Indian Alcoholic Beverage Companies vs. Competition Commission of India].

A Bench of Justice Sanjay Kumar and Justice Sanjeev Sachdeva has sought the responses of the Competition Commission of India (CCI), the Kerala State Beverages (Manufacturing and Marketing) Corporation Limited (KSBC) and the Travancore Sugar and Chemicals Limited (Jawan Rum).

Representing the Confederation of Indian Alcoholic Beverage Companies (CIABC), which filed the plea, Senior Advocate Amit Sibal said that Jawan Rum was being sold at a low price and was being given preferential treatment by the KSBC.

Taking note of the submissions, the Court issued notice.

The case involves allegations that the KSBC, which is the State's main agency for buying liquor in bulk from manufacturers and supplying it for sale in Kerala, has abused its dominant position and affected competition in liquor sale.

Two liquor industry bodies - the CIABC and the Association of Distillers, Brewers and Vintners of India - had approached the CCI in the matter in 2021, alleging that KSBC was using its position to favour government-owned liquor brands over private brands.

They alleged that KSBC fixed purchase prices unfairly, imposed one-sided tender conditions and delayed payments to private liquor manufacturers.

The industry bodies specifically objected to the preference given to Jawan Rum, made by State-owned Travancore Sugar and Chemicals Ltd.

The CCI had closed the case in 2021, saying there was not enough material to show that KSBC had abused its dominant position or harmed competition.

The NCLAT had upheld the CCI's decision in May 2026. It said the preference for Jawan Rum was part of a State policy and the industry bodies had failed to show that it had hurt competition or affected consumers' choices.

The NCLAT had also held that the liquor bodies had not provided concrete evidence of losses suffered by manufacturers, companies leaving the market or any other significant harm caused by KSBC's practices.

The CIABC has now challenged the NCLAT ruling before the Supreme Court. The Association of Distillers, Brewers and Vintners of India is also among the respondents in the matter.

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