Maharashtra Sees Rs 350 Crore Loss from Old Monk Sales Restrictions

Maharashtra's excise department is facing a significant revenue decline of approximately Rs 350 crore due to restrictions on the sale of Old Monk rum, as claimed by Mohan Rocky Springwater Pvt Ltd, the beverage's manufacturer. The ongoing dispute is currently being addressed at the Bombay High Court.

The Food Safety and Standards Authority of India (FSSAI) has mandated that the popular rum be labelled as ‘rum-like’ instead of simply ‘rum’. This requirement is being contested by the company, which asserts that the sales ban from its production unit in Thane district has led to corporate losses exceeding ₹500 crore.

During a recent court session, Additional Solicitor General Anil Singh, representing the FSSAI, confirmed that sales would resume only if the manufacturer complied with the new labelling regulations. Advocate Venkatesh Dhond, representing Mohan Rocky Springwater, alerted the court to the consequences of the FSSAI's prohibition, including the impact on around 300 workers whose jobs have been adversely affected.

Old Monk remains available for sale in other Indian states, highlighting the disparity in the regulatory approach. In an effort to comply, the company had proposed revised labels that omitted age descriptors and explicitly stated the presence of ‘added flavour’. However, the FSSAI did not approve these changes, leading to a stalemate.

In response, the manufacturer has urged the court to hear the case based on its merits, with the hearing scheduled for October 23. The legal argument revolves around the FSSAI's contention that the addition of artificial or natural rum flavouring can obscure the true nature of the beverage, potentially misleading consumers if it is not accurately labelled as a flavoured product.

Additionally, the FSSAI has raised issues regarding age-related descriptions found on Old Monk's labels, such as ‘7 years old blended’ and ‘very old vatted’, citing non-compliance with established labelling standards. The ongoing legal confrontation underscores the tension between regulatory compliance and the operational realities faced by manufacturers in the alcoholic beverage sector.

As the hearing approaches, the focus will likely remain on the implications of labelling laws and consumer rights in the context of alcoholic beverages in India.