India, Jan. 6 -- The Bombay High Court has stayed the Maharashtra government's directive requiring sugar factories to pay specified levies to various relief funds as a precondition for obtaining crushing licences, holding that the state lacks the legal authority to impose such charges.

A division bench of justices Revati Mohite Dere and Sandesh D Patil observed that if the petitions challenging the levy ultimately succeed, the state government would be required to refund the amounts already collected, along with interest. The court also directed the government not to deny crushing licences to sugar factories for non-payment of the levy and asked it to file its reply within four weeks. The matter has been posted for further hearing on Jan...