Old Monk Manufacturer Claims ₹500 Crore Loss Over Labeling Dispute
Mohan Rocky Springwater Pvt Ltd is challenging an FSSAI sales ban on Old Monk rum in the Bombay High Court over labeling requirements.
The manufacturer of Old Monk rum, Mohan Rocky Springwater Pvt Ltd, informed the Bombay High Court that a sales ban on its Khopoli factory has resulted in losses exceeding ₹500 crore. During a hearing on October 13, the company's counsel stated the restriction also left 300 workers idle and cost the Maharashtra government approximately ₹300 crore to ₹350 crore in excise revenue.
The dispute stems from a prohibition order by the Food Safety and Standards Authority of India (FSSAI). The regulator argues that the beverage cannot be labeled as rum because it is produced using neutral spirit and added flavoring, which masks the product's natural characteristics. The FSSAI claims that descriptions such as "7 years old blended" and "very old vatted" mislead consumers and has suggested the product be described as "rum-like" instead.
Mohan Rocky Springwater contends that the product is sold nationwide and that other units within Maharashtra continue to sell the same formulation. Although the company submitted revised labels disclosing added flavors and offered to remove the "7 Years Old Blended" tag, the FSSAI has not approved the changes. The Bombay High Court is scheduled to hear the matter again on October 23.
