Maharashtra has reportedly lost around Rs 350 crore in excise revenue following restrictions on Old Monk rum sales from a manufacturing unit in the state, the Bombay High Court was informed. The liquor’s manufacturer, Mohan Rocky Springwater Pvt Ltd, has also claimed business losses exceeding Rs 500 crore as it challenges a prohibition order issued by the Food Safety and Standards Authority of India (FSSAI).
The dispute centres on the product’s formulation and labelling, with the regulator questioning whether the spirit can legally be sold simply as rum when additional rum flavouring is used.
Why Were Old Monk Sales Restricted?
The restrictions followed an inspection of the company’s manufacturing facility in Khopoli, Maharashtra. In August, FSSAI raised objections to the use of added rum flavouring in spirits marketed under standard product names.
The regulator’s position is that a spirit containing added rum flavouring should not be sold simply as rum if it does not meet the applicable standards for that category. It wants the product to be labelled as “rum-like” or appropriately identified as a flavoured spirit.
FSSAI has also objected to descriptions on Old Monk labels, including “7 years old blended” and “very old vatted”, arguing that such wording could mislead consumers about the product’s age and composition.
Manufacturer Claims Rs 500 Crore in Losses
Appearing before a division bench of Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna, senior advocate Venkatesh Dhond, representing the manufacturer, told the court that the sales restrictions had caused losses exceeding Rs 500 crore to the company.
The manufacturer also claimed that the state had lost around Rs 350 crore in excise revenue. It argued that the same formulation continued to be sold through its other manufacturing units, raising questions about the restrictions imposed on the affected facility.
The company further said that around 300 workers had been left idle because of the restrictions.
These figures represent the manufacturer’s submissions before the court and should not be treated as an independently verified assessment of the losses.
FSSAI Wants the Product Labelled as ‘Rum-Like’
The regulator has maintained that the product’s description must accurately reflect its formulation. Additional Solicitor General Anil Singh, representing the authorities, told the court that sales could be permitted if the company changed the product description from “rum” to “rum-like”.
The manufacturer has challenged this position, arguing that regulations allow approved additives to be used in neutral spirits. It has also alleged that competing brands use similar processes without facing comparable restrictions.
The company previously offered revised labels that removed the disputed age-related descriptions and prominently disclosed “added flavour”. However, the regulator did not approve the proposed labels.
The Bombay High Court had earlier declined to grant an interim stay on the prohibition order.
Bombay High Court to Hear the Case on October 23
The court has scheduled the next hearing for October 23, when the dispute over the restrictions and the manufacturer’s legal challenge is expected to come up again.
The case raises questions about how alcoholic beverages should be classified and labelled, and whether a flavoured spirit can be marketed under a standard product name such as rum.
The outcome could have implications for the manufacturer, distributors, retailers and Maharashtra’s excise collections. However, the court has yet to decide the matter on its merits.
Summary
Old Monk manufacturer Mohan Rocky Springwater Pvt Ltd has told the Bombay High Court that restrictions on sales from its Maharashtra unit have cost the company more than Rs 500 crore and the state around Rs 350 crore in excise revenue. FSSAI wants the product labelled as “rum-like” because of concerns about added flavouring and age-related claims. The next hearing is scheduled for October 23.
