Bombay HC Hears Challenge To FSSAI Liquor Ban

The Bombay High Court is set to hear a challenge by liquor manufacturers United Spirits Ltd and Mohan Meakin Ltd to orders issued by the Food Safety and Standards Authority of India (FSSAI) prohibiting the manufacture and sale of fresh stocks of their popular Indian-Made Foreign Liquor (IMFL) brands, McDowell’s No. 1 Celebration Matured Rum and Old Monk.

The challenge comes after FSSAI inspections of the manufacturers' units raised objections over labelling, product composition, and the use of flavouring agents. The manufacturers argue that the regulator's action has affected a significant part of the IMFL industry and that the products have been manufactured using the same process for decades.

Counsel for United Spirits, senior advocate Birendra Saraf, submitted that the action taken by FSSAI has effectively shut down 30 per cent of the Indian-Made Foreign Liquor (IMFL) industry. The company has challenged a June 29 prohibition order and a July 27 conditional prohibition order issued by FSSAI's Western Regional Office.

While the regulator allowed existing stocks to be cleared after relabelling them as “Rum Flavoured Spirit”, the prohibition on manufacturing and selling fresh stocks continues. Saraf argued that such relabelling could not be done immediately as liquor labels require approval from the State Excise Department.

FSSAI has alleged that the products contain unauthorised artificial or nature-identical flavouring and carry descriptions that could mislead consumers. The regulator has maintained that products containing external rum flavour should be marketed as flavoured spirits rather than standard rum.

The bench observed that “everything can’t be shut down overnight”, but said it was not an expert body to determine questions relating to the products’ composition and labelling without hearing FSSAI. The court has asked Additional Solicitor General Anil Singh to appear with instructions from FSSAI.

The petitioners argued that while FSSAI raised concerns over labelling and flavouring, its Food Analyst did not find the product unsafe. The case highlights the ongoing debate over the regulation of the liquor industry in India.

The Bombay High Court's decision in this case is likely to have significant implications for the IMFL industry. The court's ruling will determine whether the FSSAI's orders were justified and whether the manufacturers can continue to produce and sell their products.

The case also raises questions about the role of regulatory bodies in ensuring consumer safety and the need for clear labelling and composition standards in the liquor industry. As the case continues, it is likely to be closely watched by industry stakeholders and consumers alike.

In the meantime, the prohibition on manufacturing and selling fresh stocks of McDowell's and Old Monk remains in place, affecting the livelihoods of those involved in the industry. The court's decision will be eagerly awaited by all parties involved.

The Bombay High Court's hearing of the case is a significant development in the ongoing saga of the IMFL industry. The court's ruling will have far-reaching implications for the industry and consumers, and it is likely to set a precedent for future cases involving regulatory disputes.

The case is a reminder of the complex regulatory landscape of the liquor industry in India and the need for clarity and consistency in the application of rules and regulations. As the case continues, it is likely to be closely watched by industry stakeholders, consumers, and regulatory bodies alike.

In conclusion, the Bombay High Court's hearing of the challenge to FSSAI's orders is a significant development in the IMFL industry. The court's ruling will have significant implications for the industry and consumers, and it is likely to set a precedent for future cases involving regulatory disputes.