Old Monk Ban: Why Is Maharashtra Losing Over INR 300 Crore in Excise Revenue Amid Factory Shutdown?
Mohan Rocky Springwater told the Bombay High Court that Maharashtra is losing over INR 300 crore in excise revenue due to its Khopoli factory shutdown since May. Amid an FSSAI dispute over labelling and flavouring, the company noted that it is the only state banning Old Monk sales. Scroll below to know more.
Alcoholic beverage maker Mohan Rocky Springwater Pvt. Ltd. informed the Bombay High Court on Monday, October 12, that the state of Maharashtra is losing more than INR 300 crore in excise revenue due to the ongoing shutdown of its Khopoli manufacturing facility since May. The plant closure, stemming from an ongoing regulatory dispute with food safety authorities, has also left approximately 300 workers idle at the facility.
Excise Revenue Loss and Nationwide Distribution
Representing the rum manufacturer, senior counsel Venkatesh Dhond emphasised the broader fiscal and operational impacts of the factory's inactivity, reports Livemint. Old Monk Is Not ‘Rum’? FSSAI Tells Bombay HC It Must Be Sold as ‘Rum-Flavoured Spirit’.
“In every state, I have a plant because alcohol excise is a state subject; ₹300 crore of excise with the state has been lost,” Dhond told the court, adding that about 300 workers at the unit have been left idle due to halted operations. Dhond also argued that Old Monk is manufactured and sold across the country, with Maharashtra being the sole jurisdiction to impose a ban.
“I am manufacturing all over the country. Only in Maharashtra I have been banned and I am the single largest manufacturer of rum with 88% of sales in the market,” he said. In response to these arguments, the court questioned why objections were raised exclusively in Maharashtra if the product is distributed nationwide.
Regulatory Dispute and Labeling Controversy
The legal action follows failed negotiations between the manufacturer and regulators after the Food Safety and Standards Authority of India (FSSAI) rejected the company's product labels twice. During an earlier hearing on September 3, the regulator informed the court that Old Monk cannot be sold as rum because it is manufactured using neutral spirit and rum flavouring. The dispute originates from FSSAI laboratory tests that detected external artificial or nature-identical flavouring substances in the products, which the regulator stated masked the beverages’ natural characteristics.
Citing the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, the regulator asserted that standardised drinks like rum and whisky must retain their characteristic taste and aroma, and that adding explicit flavouring agents misrepresents the products. Previously, on August 31, representatives for Old Monk indicated a willingness to drop the "7 Years Old Blended" tag from its packaging and submitted revised labels to the food safety regulator.
Broader FSSAI Crackdown on Beverage Manufacturers
The regulatory action against Mohan Rocky Springwater is part of a wider FSSAI enforcement sweep targeting major beverage companies. The regulator previously banned sales of specific variants of McDowell's No. 1 Rum, Antiquity Blue Whisky, and Royal Challenge Whisky produced by United Spirits; select Old Monk rum variants made by Mohan Rocky Springwater; and Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum manufactured by Inbrew Beverages. Following the filings, United Spirits withdrew its petition after reaching a settlement with the regulator. Old Monk To Drop '7 Years Old' Claim: Mohan Rocky Springwater Tells Bombay High Court It Will Relabel Rum.
Concurrently, the FSSAI has targeted non-alcoholic beverage producers, issuing notices to firms such as PepsiCo, Reliance’s Campa, and Monster Energy to discontinue using the term "energy drink" for certain products. On October 6, the Delhi High Court issued an interim order barring those companies from manufacturing additional inventory under that labelling.
(The above story first appeared on LatestLY on Oct 13, 2026 07:58 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
