Mohan Rocky Springwater, the manufacturer of Old Monk, is facing a sales ban in Maharashtra due to a labeling dispute with the FSSAI. The company reports a Rs 500 crore revenue loss, while the state excise department faces a Rs 350 crore deficit. The Bombay High Court has scheduled a final hearing for October 23, 2026.
Mohan Rocky Springwater, the private company behind the popular spirit brand Old Monk, is currently facing a significant business challenge due to a regulatory conflict in Maharashtra. The Food Safety and Standards Authority of India (FSSAI) has blocked the sale of certain variants produced at the company’s Thane facility. The dispute centers on how the product is labeled and marketed to consumers.
The regulatory body contends that the current labeling misleads customers. Specifically, the FSSAI has raised objections to the use of terms like 'rum' for products that allegedly use artificial or nature-identical flavoring. The regulator insists that such products should be clearly labeled as 'rum-flavored' or 'rum-like' spirits to avoid confusion. Additionally, the FSSAI has flagged age-related marketing descriptions, such as '7 years old blended' and 'very old vatted,' claiming these do not align with current food safety and labeling standards.
Financial and Operational Impact
The sales prohibition has had a direct impact on the company's operations. During recent hearings at the Bombay High Court, the company’s legal counsel stated that the ban has resulted in corporate losses exceeding Rs 500 crore. Beyond the impact on the manufacturer, the local government is also feeling the pressure. The Maharashtra excise department reportedly faces a revenue deficit of approximately Rs 350 crore due to the halt in production and sales. Furthermore, the disruption at the Thane factory has left roughly 300 workers without employment, highlighting the broader economic ripple effects of the impasse.
The manufacturer has attempted to resolve the issue by submitting revised labels to meet the regulator's demands. However, previous negotiations between the company and the FSSAI have failed to produce an agreement, leaving the legal route as the only remaining path to resolve the conflict.
Legal Proceedings and Context
The matter is now under the consideration of the Bombay High Court, with a bench led by Chief Justice MC Tripathi and Justice Advait Sethna. The court has previously denied an interim stay on the sales ban, meaning the restrictions remain in place while the legal process continues. A final hearing has been scheduled for October 23, 2026. This decision is expected to determine whether the company must adopt the labeling changes mandated by the FSSAI or if the court will intervene to lift the market restrictions.
For readers, it is important to note that Mohan Rocky Springwater is a private, unlisted company and does not trade on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). While this dispute does not directly impact publicly traded stocks, it serves as a significant case study for the alcoholic beverage sector regarding regulatory compliance and labeling standards. The outcome of the October 23 hearing will be the next key update, as it may set a precedent for how flavored spirits are labeled and marketed across the country.