Old Monk Sales Ban In Maharashtra: Company Claims ₹500 Crore Loss, State Govt Loses ₹350 Crore In Excise Revenue
· Free Press Journal
Mumbai: Mohan Rocky Springwater Pvt Ltd, the manufacturer of popular rum brand Old Monk, has told the Bombay High Court that restrictions on sales from one of its units in Maharashtra have caused losses exceeding Rs 500 crore to the company and cost the state government around Rs 350 crore in excise revenue.
The submission was made on Monday as the company challenged a prohibition order issued by the Food Safety and Standards Authority of India (FSSAI) over the rum’s formulation and labelling. The manufacturer also pointed out that the same formulation continued to be sold from its other units in Maharashtra, despite the restrictions imposed on sales from the affected facility.
Visit tr-sport.bond for more information.
A Division Bench comprising Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna is scheduled to hear the matter next on October 23.
Also Watch:
What The Company Told The Court
Senior advocate Venkatesh Dhond, appearing for Mohan Rocky Springwater, told the court that the sales restriction had resulted in losses of more than Rs 500 crore for the company. He also highlighted the impact on the state exchequer. “The excise has also lost around Rs 350 crore in revenue,” Dhond said, as reported by Bar and Bench.
The company argued that regulations permit the use of approved additives in neutral spirits and questioned why its product faced restrictions when, according to its submission, competing brands use similar processes without facing comparable action.
Additional Solicitor General Anil Singh, appearing for the authorities, reiterated that sales could be permitted if the manufacturer agreed to change the product description from 'rum' to 'rum-like'.
The High Court had earlier declined to grant an immediate interim stay on the prohibition order. The company then agreed to submit revised labels removing disputed age-related descriptions and prominently disclosing 'added flavour'. However, the regulator did not approve the revised labels.
Why Has FSSAI Objected To Old Monk?
The dispute stems from an inspection of the company’s Khopoli plant in Maharashtra, following which the FSSAI raised objections to the product’s composition and labelling.
The regulator questioned the use of added rum flavouring in spirits marketed under the standard product name 'rum'. It also objected to age-related descriptions such as '7 years old blended' and 'very old vatted', raising concerns about whether consumers could be led to believe that the entire blend had been aged for the stated period.
Bombay HC Refuses Immediate Stay On Old Monk Sales Ban In Maharashtra Over Labelling ConcernsDispute Over Classification & Labelling
The FSSAI’s objection centres on whether a spirit made using neutral alcohol and added rum flavouring can be marketed simply as rum. The regulator has maintained that labels must accurately reflect a product’s composition and should not mislead consumers about its identity or ageing.
It has argued that products using artificial or nature-identical rum flavouring should be identified appropriately as flavoured spirits rather than sold under a standard category name without adequate disclosure.
The court’s next hearing on October 23 is expected to take the dispute forward as the manufacturer challenges the restrictions and the regulator’s position on the product’s classification and labelling.