PEPSICO INDIA HOLDING PVT.LTD. vs STATE OF MAHARASHTRA .

The Supreme Court held that the retrospective application of increased water charges by the Maharashtra Industrial Development Corporation (MIDC) is impermissible under the Maharashtra Industrial Development Corporation Water Supply Regulations, 1973. The Court emphasized that Clause 27 of the Water Supply Agreement mandates prior notice before any change in charges, thus reinforcing the principle of fair notice in administrative actions. The appeal was allowed, setting aside the High Court's decision that upheld the retrospective levy of charges.