Home Food Safety Old Monk Maker Claims ₹500 Crore Loss Amid Label Dispute

Old Monk Maker Claims ₹500 Crore Loss Amid Label Dispute

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Popular rum brand Old Monk has told the Bombay High Court that it suffered losses exceeding ₹500 crore after the Food Safety and Standards Authority of India (FSSAI) barred the sale of products manufactured at its Maharashtra unit unless the label changes from “rum” to “rum-like.”

During a hearing on Monday, the FSSAI maintained that sales would only be permitted if the manufacturer, Mohan Rocky Springwater Pvt Ltd, agreed to the revised description sought by the regulator.

Representing the company, senior advocate Venkatesh Dhond argued that the restriction has severely impacted business operations. According to the company, the sales ban resulted in losses exceeding ₹500 crore, while the state excise department reportedly lost around ₹350 crore in revenue. The company also said nearly 300 workers are without work due to the ongoing dispute.

The manufacturer further highlighted that Old Monk continues to be sold in other states, while its sale remains prohibited in Maharashtra.

The controversy centres on FSSAI’s objections to products containing added rum flavouring. The regulator argues that such products should be clearly identified as flavoured spirits or “rum-like” beverages to avoid misleading consumers about their composition.

Earlier, the company attempted to resolve the issue by submitting revised labels that removed disputed age-related claims and prominently disclosed the presence of added flavouring. However, FSSAI did not approve the revised labels, and negotiations between the two sides failed to break the deadlock.

The Bombay High Court has now agreed to hear the matter on merits, with the case scheduled for final hearing on October 23.

In addition to the flavouring issue, FSSAI also objected to label descriptions such as “7 Years Old Blended” and “Very Old Vatted,” alleging that they do not comply with current labelling regulations.

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