Diageo has taken its dispute with the Food Safety and Standards Authority of India (FSSAI) to court, challenging a prohibition order against one of its popular rum brands. The drinks group argues that the regulator failed to follow due legal process and maintains that it has fully complied with Indian law.
Diageo has taken its dispute with the Food Safety and Standards Authority of India (FSSAI) to court, challenging a prohibition order against one of its popular rum brands.
The company argues that the action was taken without following due legal process. It denies any illegality and says it always fully complies with the law.
The dispute concerns McDowell’s No. 1 Celebration Matured XXX Rum, manufactured by United Spirits, Diageo’s India subsidiary, in Maharashtra state.
Diageo questions regulator’s authority
United Spirits has argued in the Mumbai High Court that the food safety officer who issued the prohibition order “did not have the legal authority” to do so.
It also claims that the regulator bypassed the required adjudicatory process by relying on a food analyst’s report to stop sales.
The prohibition came when India’s food safety regulator was consulting the industry on how flavouring in alcoholic beverages should be declared and regulated.
Ban remains in place
According to court filings reviewed by Reuters, United Spirits has argued that continuing the prohibition while FSSAI was still considering the regulatory issue was “premature, disproportionate and commercially prejudicial”.
The court made no ruling, so the ban remains in place until the next hearing, which is scheduled for next week.
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