Passing the order while allowing a petition filed by M/s Vinp Distilleries and Sugars Pvt Ltd of Haveri district, Justice M Nagaprasanna observed that the company was entitled to seek relief under the terms of the agreement entered into with the OMCs, The New Indian Express reported.

The petition sought directions for consideration of the company's representation dated October 27, 2025, requesting enhanced ethanol supply allocation.

In the order, the court noted that the OMCs had already invoked Clause 6.8 of the agreement to increase procurement from 1.44 crore litres to 3.92 crore litres. The court observed that the same clause could not be applied selectively while rejecting the company's request for allocation of 9.90 crore litres.

Justice Nagaprasanna stated that permitting such selective application would make the operation of the clause dependent on the discretion of the OMCs, which would not be consistent with legal principles.

According to the petition, Vinp Distilleries was established exclusively to supply ethanol to OMCs. In August 2021, the OMCs issued a tender to enter into long-term offtake agreements with dedicated ethanol plants located in ethanol-deficit states, with bids opened in September that year.

Subsequently, in March 2023, OMCs issued a second expression of interest for signing long-term offtake agreements in selected states.

Later, in September 2025, OMCs floated a tender inviting bids for the supply of 1,050 crore litres of denatured anhydrous ethanol for the ethanol supply year 2025-26.

The company stated that through an email dated October 17, 2025, it was informed that only 3.92 crore litres of ethanol had been allotted against its bid allocation of 9.26 crore litres, leading to the present legal challenge.