Blitz Bureau
NEW DELHI: The Supreme Court ordered maintenance of status quo on ethanol allocation for the Ethanol Supply Year (ESY) 2025-26, temporarily staying the effect of a Karnataka High Court direction requiring oil marketing companies (OMCs) to reconsider the allocation made to a dedicated ethanol manufacturer.
A bench of Justices MM Sundresh and Sheel Nagu passed the interim order while hearing a special leave petition (SLP) filed by Bharat Petroleum Corporation Limited (BPCL) challenging the June 16 judgment of the Karnataka High Court.
The apex court issued notice to the respondents and 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 Justice Sundresh-led Bench ordered.
Appearing for BPCL, Attorney General (AG) R. Venkataramani contended that the Karnataka High Court’s direction to reconsider the representation of VINP Distilleries and Sugars Pvt. Ltd. seeking enhancement of its ethanol allocation could destabilise the Centre’s ethanol blending policy and disrupt the ongoing procurement process.
The AG submitted that ethanol supply contracts for ESY 2025-26 had already been finalised in October 2025 and supplies under the contracts were underway. The Centre’s highest law officer argued that no company could claim a legal entitlement to a higher ethanol quota and that judicial directions effectively altering the allocation methodology would amount to interference with government policy.
