United Spirits Limited has filed a disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing stock exchanges of a significant litigation development involving a water charges demand of INR 441.95 crore raised by the Water Resources Department (WRD), Government of Maharashtra. The disclosure was made on 17th May 2026 and signed by Pragya Kaul, Company Secretary and Compliance Officer.

Background and Demand Details

The matter has a prior history, with earlier stock exchange intimations dated 15th August 2023, 21st May 2024, and 1st October 2025. Pursuant to directions of the Bombay High Court vide its order dated 26th September 2025, the WRD issued a letter dated 20th March 2026 (received on 24th March 2026) to the company. The letter computed the total amount payable within 30 days towards water charges for the period November 2018 to February 2026, after accounting for adjustments.

The key financial parameters of the demand are summarised below:

Company's Objections to the Demand

United Spirits raised several procedural and substantive objections to the demand. The company stated that the WRD did not comply with the High Court's directions to ensure adherence to the Principles of Natural Justice. Specifically, the company was not granted a hearing, and the WRD failed to consider the material placed on record by the company. Additionally, the WRD did not provide a copy of its purported study on which the computation of the demand was based.

On these grounds, the company challenged the demand by filing a Writ Petition before the Bombay High Court, contending that the demand letter and the basis of its computation were contrary to and in violation of the earlier judgment dated 26th September 2025.

Judicial Proceedings and Interim Relief

The Bombay High Court, vide its order dated 5th May 2026, issued notices to the respondents. However, no ad-interim protection was granted to the company, and the writ petition remains pending adjudication. Given this development, the company, based on advice from external counsel, filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court of India seeking interim protection against any coercive action by the WRD.

The timeline of key judicial events is as follows:

By its order dated 12th May 2026, the Supreme Court granted four weeks to USL to deposit INR 50 Crore with the Court—and not with the WRD—as an interim measure. During this period, the WRD is restrained from taking any coercive action against USL.

Expected Financial Impact

The opposing parties in this matter include the State of Maharashtra, the Maharashtra Water Resources Regulatory Authority (MWRRA), the Water Resources Department (WRD), the Sub-Divisional Engineer (WRD), and the Executive Engineer (WRD). Based on its risk assessment process, United Spirits stated that it believes it has a good case on merits and accordingly does not expect any material financial implications from this litigation.

United Spirits Limited has informed stock exchanges that its Board of Directors, at its meeting held on 14th May 2026, reviewed and amended the "Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information" (Code for Fair Disclosure). The intimation was made in compliance with Regulation 8(2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (SEBI PIT Regulations). The amended Code has been made available on the company's website at www.diageoindia.com .

Key Details of the Amended Code

The following table summarises the key administrative details of the amended Code:

Purpose and Applicability

The Code for Fair Disclosure lays down principles and practices to be followed by United Spirits Limited in relation to the procurement and communication of UPSI. It applies to all disclosures of UPSI made by or relating to the company, its subsidiaries, associates, and companies under the same management. The Code prohibits insiders from communicating, providing, or allowing access to UPSI—even to other insiders—unless the communication is in furtherance of a legitimate purpose, duties, or discharge of legal obligations. All insiders are required to handle UPSI strictly on a need-to-know basis.

Dissemination and Disclosure Framework

The amended Code outlines a structured framework for the prompt, uniform, and universal dissemination of UPSI. Key provisions include:

• Prompt public disclosure of UPSI as soon as credible and concrete information comes into being
• Uniform dissemination to all stock exchanges where the company's securities are listed, in accordance with the Listing Agreement
• Website publication of information filed with stock exchanges for wider circulation
• Simultaneous public access during structured communication events such as analyst calls, through audio broadcast over phone, internet, or suitable media
• Restricted period during which management refrains from investor engagement or analyst calls to discuss business performance, running from the first calendar day of the first month of the quarter until the financial results of the previous quarter are made public

Roles and Responsibilities

The Code designates specific roles for overseeing disclosure obligations. The Compliance Officer holds prime responsibility for overseeing the operation of the Code, including complying with continuous disclosure requirements, coordinating disclosure of UPSI to stock exchanges, analysts, shareholders, and media, and educating staff on disclosure policies. The Chief Financial Officer, or a person holding a similar position, is designated as the Chief Investor Relations Officer (CIRO), responsible for dissemination of information and disclosure of UPSI. In the absence of the CIRO, the Compliance Officer or any other senior-level employee authorised by the Board shall act in that capacity.

Handling of UPSI and Legitimate Purposes

The Code specifies that UPSI shall be handled internally on a need-to-know basis only. Sharing of UPSI is permitted solely for legitimate purposes, which include sharing in the ordinary course of business with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals, rating agencies, statutory authorities, regulatory bodies, industry associations, parent or holding companies, affiliates, and employees—provided such sharing is not carried out to evade or circumvent the prohibitions of the Regulations. Any person receiving UPSI pursuant to a legitimate purpose is considered an insider under the Regulations and is required to maintain confidentiality.

Regulatory Response and Future Updates

The Code also mandates that United Spirits Limited respond appropriately and fairly to queries on news reports and requests for verification of market rumours by regulatory authorities. All stock exchanges where the company's securities are listed are to be informed of the name, address, contact details, and email of the Compliance Officer. The Code may be updated to incorporate statutory amendments upon their becoming effective, followed by filing with stock exchanges and placing before the Board for noting in the subsequent meeting.