Old Monk Seeks Relief from Rs 500 Crore Loss Amid Labelling Dispute
Old Monk's manufacturer claims over Rs 500 crore in losses due to FSSAI's labelling demands as the case heads to final hearing.
Old Monk faces significant financial losses exceeding Rs 500 crore due to sales restrictions in Maharashtra.
The FSSAI insists on changing the product label to 'rum-like', impacting sales and revenue.
The Bombay High Court will hear the case on October 23, focusing on labelling compliance.
Old Monk, a popular rum brand, is embroiled in a legal battle that has led to reported losses exceeding Rs 500 crore. The manufacturer, Mohan Rocky Springwater Pvt Ltd, has approached the Bombay High Court after the Food Safety and Standards Authority of India (FSSAI) mandated a change in the product's labelling from 'rum' to 'rum-like' in order to continue sales in Maharashtra.
The issue arose when the FSSAI prohibited the sale of Old Monk in Maharashtra unless the label was altered. During a recent court hearing, Additional Solicitor General Anil Singh, representing the FSSAI, stated that sales would only be permitted if the manufacturer complied with the proposed labelling changes. Advocate Venkatesh Dhond, representing the manufacturer, highlighted the severe financial impact of the sales ban, noting that the excise department had also lost around Rs 350 crore in revenue, leaving approximately 300 workers without jobs.
Despite the ongoing dispute, Old Monk continues to be sold in other states, raising questions about the consistency of regulatory enforcement. The manufacturer is challenging the FSSAI's prohibition order, and in previous hearings, the High Court had denied requests for an immediate stay on the sales ban. In a bid to resolve the matter, the company had submitted revised labels that removed controversial age descriptors and included disclosures about added flavouring, but these revisions were not accepted by the FSSAI.
The core of the dispute centers on the FSSAI's concerns regarding the use of added rum flavouring in liquor products marketed under traditional names. The regulator argues that such flavouring could mislead consumers regarding the true nature of the spirit unless clearly labelled. Additionally, the FSSAI has raised objections to age-related claims on Old Monk labels, citing non-compliance with labelling standards.
As the case progresses, the Bombay High Court has scheduled a final hearing for October 23. The outcome could have significant implications for Old Monk and the broader liquor industry in India, particularly regarding labelling practices and regulatory compliance.
