RAWALPINDI: The Lahore High Court (LHC) Rawalpindi bench on Wednesday restrained the local governments from imposing water conservancy charges on industries under the law promulgated in 2022.

LHC Justice Jawad Hassan was hearing the petition of Maple Leaf Factory, challenging a demand notice issued by the District Council Mianwali for water conservancy charges amounting to Rs752 million.

The court has issued notices to the Punjab government and other respondents to provide a response by February 7 and has restrained authorities from taking coercive measures against the company in the interim.

The petitioner, represented by advocate Mirza Mahmood Ahmad, has contested the legality of the notice under the Punjab Local Government Act, 2022, arguing that it conflicts with the Punjab Water Act, 2019.

The company contends that it draws water directly from the Indus River with the necessary permissions from the Irrigation Department and is therefore exempt from the local government`s charges.

The dispute began in 2018 when the District Council Mianwali first demanded the installation of water meters and levied charges. Maple Leaf Factory challenged these measures in multiple legal proceedings, arguing that the Punjab Water Act gives exclusive authority to the Punjab Water Resources Commission and the Punjab Water Services Regulatory Authority to regulate water charges.

In previous rulings, the court had referred the matter to the Secretary of Local Government, who upheld the charges based on technical committee recommendations.

The petitioner criticised these recommendations as flawed and lacking proper evaluation of water sources.

During the hearing, the petitioner`s counsel highlighted conflict between the general provisions of the Local Government Act and the specialised framework under the Punjab Water Act.