Old Monk Maker Claims Maharashtra Lost ₹300 Crore Since Factory Shutdown

The company behind Old Monk rum has informed the Bombay High Court that Maharashtra state has forfeited over ₹300 crore in excise revenue since its Khopoli manufacturing facility ceased operations in May. The shutdown has also left approximately 300 workers without active employment at the site.

Senior counsel Venkatesh Dhond, representing Mohan Rocky Springwater Pvt. Ltd, emphasized the company's significant market presence during Monday's hearing. He stated that the manufacturer controls 88% of the rum market and operates production facilities across multiple states, with Maharashtra being the only location currently enforcing a ban. The court questioned why objections to the product existed solely in Maharashtra if it was being sold throughout India.

The dispute centers on labeling requirements set by the Food Safety and Standards Authority of India (FSSAI), which has twice rejected the company's product labels. The regulator contends that Old Monk cannot be marketed as rum because it is produced using neutral spirit and rum flavoring, rather than meeting standards for characteristic taste and aroma outlined in 2018 regulations.

The manufacturer has indicated willingness to compromise, offering to remove the "7 Years Old Blended" designation from its labels and submitting revised packaging to the food authority. However, negotiations between the company and FSSAI have not yet reached a resolution, according to court proceedings.

This case is part of a wider regulatory enforcement effort by FSSAI targeting beverage manufacturers. The authority has also banned specific variants of products from United Spirits and Inbrew Beverages, while separately issuing notices to companies including PepsiCo and Reliance's Campa regarding "energy drink" labeling.