This means that 13 matches, including the final in Mumbai on May 29, cannot be held in Maharashtra.
The order came despite an assurance by BCCI that IPL franchises of Mumbai and Pune had agreed to contribute Rs five crore to CM's drought relief fund.
"We agree that merely shifting of IPL matches out of the state will not be a solution but this can be a beginning to address the drought situation in Maharashtra. Several people are dying because of water scarcity in the state. This court cannot ignore the plight of such people," a division bench of Justices V M Kanade and M S Karnik said.
The court also noted that several districts in Maharashtra are not even getting water for sanitation and other purposes and that the non-potable water being used by the stadiums to maintain pitches can be of use in such districts.
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After April 30, 13 matches were scheduled to be held in Mumbai, Pune and Nagpur which includes an eliminator match on May 25 and qualifier match on May 27 in Pune and the finals on May 29 in Mumbai.
Earlier in the day, Royal Western India Turf Club (RWITC) through BCCI gave an undertaking to the court that it would supply over 60 lakh litres treated sewage water to maintain pitches in Mumbai and Pune stadiums. BCCI had yesterday agreed to shift three matches out of Nagpur.
the most the BCCI and IPL franchises will suffer financial loss. Considering the drought situation in Maharashtra it will be better if the matches are held outside the state," the court said.
The court, while disposing of the PIL, said it would continue monitoring the issue of implementation of water policy by the state government in other similar petitions.
"There is no doubt that the state of Maharashtra and many districts in Marathwada region are facing severe drought. The situation in Marathwada is very acute with the people there not getting a single drop of water since many days. All dams and rivers have gone dry and water had to be supplied via train to Latur," the court noted.
"The state government has turned a blind eye to the entire issue. We are disturbed by the government's stand and ultimately it is clear that the government is trying to pass on the buck to the municipal corporations by saying that the government has not supplied any water to stadiums," the court observed.
It further noted that the government on the one hand said that it has no objection if the IPL matches are shifted outside Maharashtra but on the other hand has not even bothered to inquire with the cricket board or the other cricket associations over alleged misuse of water to maintain pitches.
Earlier, during the arguments, acting Advocate General Rohit Deo told the court that the government would not be in favour of IPL matches if potable water is being used to maintain pitches.
"However, if drinking water is not being misused then we have nothing against IPL. Is any sport so pernicious or sinful that it has to be sent to another state. If one wants to show solidarity towards the drought situation and ban IPL matches then all other activities like theatres and circus should be sent out of Maharashtra," Deo said.