Old Monk sales ban hits Mohan Rocky Springwater with ₹500 cr loss, Maharashtra loses ₹350 cr in excise
Mohan Rocky Springwater Pvt Ltd told the Bombay High Court that a sales restriction on its Old Monk rum in Maharashtra has cost the company over ₹500 crore and deprived the state of about ₹350 crore in excise revenue.
Mohan Rocky Springwater Pvt Ltd appeared before a Division Bench of the Bombay High Court, asserting that the ban on selling Old Monk rum from one of its Maharashtra units has resulted in losses of more than ₹500 crore for the company and a loss of about ₹350 crore in excise revenue for the state. The restriction stems from a Food Safety and Standards Authority of India order objecting to the spirit’s use of added rum flavouring and age-related labeling claims such as “7 years old blended.”
The manufacturer pointed out that identical rum batches are still sold from its other Maharashtra facilities, arguing that the regulations permit approved additives in neutral spirits. The regulator insists the label be changed to “rum-like” and has not approved the company’s revised packaging that adds a “added flavour” disclaimer. Senior advocate Venkatesh Dhond represented the company, while Additional Solicitor General Anil Singh spoke for the authorities. The court will reconvene on October 23 to consider the matter further.
Why it matters
The dispute threatens a major liquor brand’s sales and deprives Maharashtra of significant tax revenue.
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