Politics · India Bureau
Old Monk sales suspension costs Maharashtra ₹350 crore in lost revenue
A prolonged dispute between liquor manufacturer Mohan Meakins and India's food safety regulator has resulted in significant financial losses for both the company and the state government. The sales ban on the iconic rum brand remains unresolved over labelling and flavouring compliance issues.
LSN India ·
The Maharashtra government has foregone approximately ₹350 crore in tax revenue following the suspension of Old Monk rum sales in the state, according to submissions made to the Bombay High Court. The liquor manufacturer reported losses exceeding ₹500 crore since the sales restriction came into effect, highlighting the substantial economic impact of the ongoing regulatory standoff.
The dispute centres on compliance matters involving rum flavouring and product labelling standards set by the Food Safety and Standards Authority of India (FSSAI). The regulatory disagreement has prevented the resumption of sales for one of India's most recognisable spirits brands, which maintains a significant market presence across the country.
The case underscores broader tensions between liquor manufacturers and food safety regulators regarding product classification and labelling requirements. Industry observers note that protracted regulatory disputes can create substantial financial burdens for both commercial entities and state governments dependent on excise revenues.
No resolution timeline has been established for the ongoing dispute, leaving the status of Old Monk sales in Maharashtra uncertain. The High Court proceedings may determine whether clarifications to labelling or reformulation of flavouring elements could facilitate the brand's return to shelves in the state.