Mohan Rocky Springwater Pvt. Ltd, the maker of Old Monk rum, informed the Bombay High Court that Maharashtra has lost over ₹300 crore in excise revenue since the shutdown of its Khopoli factory in May. The company highlighted that about 300 workers at the unit have been left idle due to halted operations, underscoring the economic impact of the closure, according to livemint.com.
Senior counsel Venkatesh Dhond, representing the company, stated that despite Old Monk being manufactured and sold across India, Maharashtra is the only state to impose a ban on the product. The Food Safety and Standards Authority of India (FSSAI) rejected the product labels twice, arguing that Old Monk cannot be sold as rum because it is made using neutral spirit and rum flavouring. The company has engaged in talks with the regulator but has not reached a middle ground, as reported by livemint.com.
The court questioned why objections were raised exclusively in Maharashtra if the product is sold nationwide. Mohan Rocky Springwater also offered to drop the '7 Years Old Blended' tag from its label and submitted revised packaging in an attempt to resolve the issue. The dispute highlights regulatory challenges faced by alcoholic beverage makers and the financial consequences for the state due to the shutdown of a major manufacturing unit, per livemint.com.
The Bombay High Court heard these arguments on Monday, with the next steps likely to influence the resumption of operations at the Khopoli plant and the recovery of excise revenue for Maharashtra. The case continues to draw attention to the regulatory environment for alcohol production in the state, according to livemint.com.