Mohan Rocky Springwater Pvt. Ltd., the manufacturer of Old Monk rum, has told the Bombay High Court that Maharashtra has lost more than ₹300 crore in excise revenue since the company’s Khopoli manufacturing plant was shut down in May 2026. The company attributed the loss to the suspension of operations following a regulatory dispute over the product’s labelling and classification. It also said that approximately 300 workers at the facility have been left idle since production stopped.
Representing the company, senior counsel Venkatesh Dhond argued that the shutdown has affected both state revenue and employment. He told the court that the company operates manufacturing facilities across different states because alcohol excise is a state subject, and claimed that Maharashtra alone had stopped the sale of the disputed product. The company also maintained that Old Monk is manufactured and sold across India and described itself as a leading player in the rum market. During the hearing, the court questioned why objections had been raised in Maharashtra if the product was being sold in other parts of the country.
The dispute centres on the Food Safety and Standards Authority of India’s (FSSAI) objections to the composition and labelling of certain alcoholic beverages. The regulator has rejected Old Monk’s product labels twice, with discussions between the company and the authority failing to resolve the disagreement. During an earlier hearing on September 3, the FSSAI argued that Old Monk could not be sold as rum because it was manufactured using neutral spirit and rum flavouring.
On August 31, Mohan Rocky Springwater informed the court that it was willing to remove the description “7 Years Old Blended” from the product label and had submitted revised packaging to the food regulator. However, the disagreement over the product’s classification and use of flavouring substances remains central to the case.
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Nasha Mukt Yuva for Viksit Bharat UP Prohibition Department Holds Youth Awareness Seminar at AKTU LucknowThe regulatory action follows laboratory tests in which the FSSAI reportedly detected external artificial or nature-identical flavouring substances in certain alcoholic beverage products. According to the regulator, these substances could mask the beverages’ natural characteristics and affect their compliance with prescribed standards. The action has also involved selected variants of McDowell’s No. 1 Rum, Antiquity Blue Whisky and Royal Challenge Whisky manufactured by United Spirits, along with certain Old Monk variants and products from Inbrew Beverages, including Bagpiper Deluxe Whisky and Old Cask Deluxe XXX Rum.
Citing the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, the FSSAI has maintained that standardised alcoholic beverages must retain their characteristic taste and aroma. The regulator argues that adding flavouring substances identified as rum or whisky flavour can misrepresent the nature of products sold under those categories. United Spirits subsequently withdrew its petition after reaching a settlement with the regulator.
The Old Monk case highlights the wider regulatory scrutiny facing India’s alcoholic beverage industry over product standards, labelling and ingredient disclosures. The outcome of the legal proceedings could have implications for the company’s Maharashtra operations, state excise collections, workers at the Khopoli facility and the broader interpretation of standards governing rum and other alcoholic beverages.
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