Old Monk manufacturer Mohan Rocky Springwater Private Limited has told the Bombay High Court that restrictions on the manufacture and sale of the liquor brand in Maharashtra have caused losses exceeding ₹500 crore, while the state could face an alleged excise revenue shortfall of about ₹350 crore. The court will hear the matter again on October 23 after declining to grant immediate interim relief to the company.
The company has challenged restrictions affecting its Maharashtra operations, including a production facility in Thane district. During the hearing, its lawyers highlighted the financial impact of the action and argued that liquor made using the same formulation continues to be sold from some of the company’s other manufacturing units, while the Maharashtra facility remains affected.
The dispute centres on the ingredients used in Old Monk and the information displayed on its bottle labels. According to the report, the Food Safety and Standards Authority of India has raised objections concerning the product’s classification and labelling. The regulatory concern relates to requirements that a liquor product containing externally added rum flavouring should disclose that information clearly on its label.
Authorities have questioned whether marketing such a product simply as rum could mislead consumers about its composition. Following the objections, restrictions were imposed on manufacturing and sales linked to the concerned Maharashtra facility. The company has sought an opportunity to present its case on the manufacturing process and the ingredients used in the product.
During the proceedings, counsel for the Centre indicated that sales could potentially be allowed to resume if the company replaced the word “rum” on the label with “rum-like product”. The manufacturer has reportedly proposed changes to the label previously, but the revised version has not received approval.
The case places a state manufacturing facility, product labelling rules and excise collections within the same regulatory dispute. The company’s claim of more than ₹500 crore in losses relates to the restrictions on its operations, while the estimated ₹350 crore impact on Maharashtra’s excise revenue was cited during the proceedings. These figures remain claims made in the court proceedings and are yet to be adjudicated.
The High Court has not granted immediate interim relief, leaving the restrictions in place for now. The next hearing on October 23 is expected to address the company’s arguments on its manufacturing process, the regulatory objections over classification and labelling, and the possibility of resuming sales in Maharashtra.
