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Old Monk Ban Cost Maharashtra Rs 350 Crore in Revenue and Caused Rs 500 Crore Loss
- •Mohan Rocky Springwater Pvt. Ltd. told the Bombay High Court that the Maharashtra State Excise Department lost about Rs 350 crore in revenue due to the sale ban on Old Monk.
- •The company stated that the restrictions on sales from its Thane district unit resulted in over Rs 500 crore in losses and left around 300 workers idle.
- •The FSSAI prohibited the sale of certain variants of whisky and rum brands, including Old Monk, in August over the use of artificial flavouring and misleading labels.
- •The FSSAI stated it would permit sales if the company agreed to modify its labelling to describe the product as rum-like instead of rum.
- •The ban also affects other popular brands such as Antiquity Blue Whisky, Royal Challenge Whisky, Bagpiper Deluxe Whisky, and Old Cask Deluxe XXX Rum.
Key Questions Answered
The FSSAI banned the sale of select liquor variants, including Old Monk, after finding that they used external artificial or nature-identical flavoring substances in neutral spirit rather than developing flavor through standard manufacturing practices, making them sub-standard. The regulator also objected to misleading aging and branding descriptors on the labels.
Mohan Rocky Springwater Pvt. Ltd. informed the Bombay High Court that the sales ban on Old Monk from its Thane district unit caused a company loss exceeding Rs 500 crore. Additionally, the manufacturer stated that the Maharashtra State Excise Department lost approximately Rs 350 crore in revenue, leaving about 300 workers idle.
The FSSAI stated it would permit sales to resume if the company modifies its product labeling to describe the beverage as a "rum-like" or "rum-flavored spirit" instead of authentic rum, due to the use of added external flavorings.
