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Old Monk maker claims Rs 500 crore losses as FSSAI labelling row continues
Manufacturer says sales curbs have caused over Rs 500 crore in losses and left 300 workers idle
MUMBAI: The Old Monk ban is proving a costly brew for Maharashtra. The rum’s manufacturer, Mohan Rocky Springwater Pvt. Ltd., told the Bombay High Court on Monday that restrictions on sales have cost the state’s excise department approximately Rs 350 crore in revenue, while inflicting losses exceeding Rs 500 crore on the company.
The company also said around 300 workers had been left idle following the restrictions on sales from its manufacturing unit in Thane district. Its counsel, senior advocate Venkatesh Dhond, argued that Old Monk continued to be sold in other states despite the curbs in Maharashtra.
The dispute centres on the Food Safety and Standards Authority of India’s (FSSAI) decision in August to prohibit the sale of certain whisky and rum variants, including Old Monk, over concerns about artificial flavouring and product labelling.
The matter came up before a division bench comprising Bombay High Court Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna.
The FSSAI has maintained that Old Monk cannot be marketed as rum if external rum flavouring is added to the spirit. It has argued that the product should instead be classified as a “rum-like” alcoholic beverage.
Additional solicitor general Anil Singh, appearing for the FSSAI, told the court that sales could be permitted if the company agreed to change its labelling to describe the product as “rum-like” rather than “rum”.
The regulator has argued that adding external flavouring to spirits sold under standard product names does not conform to internationally recognised manufacturing practices. In August, it said there was no internationally recognised manufacturing practice under which rum flavour was added to rum or whisky flavour to whisky.
The restrictions also cover ageing-related descriptions on labels, including “7 years old blended” and “very old vatted”, which the regulator has flagged as potentially misleading.
Old Monk is not the only brand affected by the regulatory action. The restrictions also cover Antiquity Blue Whisky and Royal Challenge Whisky, manufactured by United Spirits in Madhya Pradesh, as well as Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum, produced by Inbrew Beverages.
The Bombay High Court had earlier declined to grant an interim stay on the prohibition, leaving the affected manufacturers facing restrictions while the dispute continues.
At the heart of the case is a question with significant commercial consequences for liquor makers: how products containing added flavours can be classified and marketed under food safety rules.
For Mohan Rocky Springwater, the stakes extend beyond the label on a bottle. With the company claiming losses of more than Rs 500 crore and Maharashtra facing a potential Rs 350 crore revenue shortfall, the outcome could have implications for manufacturers, workers and the state’s excise collections.
