- United Spirits ordered by FSSAI to halt sale of certain whisky products from Madhya Pradesh unit
- The directive cites alleged labelling violations under the Food Safety and Standards Act, 2006
- Order dated July 29 was received by the company on August 4 and verified internally before disclosure
United Spirits Ltd. said the Food Safety and Standards Authority of India (FSSAI) has directed it to halt the sale of certain whisky products manufactured at one of its third-party facilities in Madhya Pradesh, citing alleged labelling violations under the Food Safety and Standards Act, 2006 (FSSA).
In an exchange filing on Tuesday, the company said it received the regulator's order on Aug. 4, although the order itself is dated July 29. The company attributed the delay in disclosure to the time required to verify facts with multiple internal stakeholders.
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According to the filing, the regulator has taken the view that labels on the identified whisky products are not in conformity with the provisions of the FSSA. The order specifically relates to products manufactured at a contract manufacturing unit in Madhya Pradesh and does not cover the company's entire product portfolio.
United Spirits said the regulator's action requires the sale of the identified whisky products to be halted.
Despite the regulatory action, the company said the order does not currently have any material operational or financial implications.
"Currently, there are no material operational or financial implications because of the Order. The Company continues to closely monitor this matter and its operational and financial implications," United Spirits said in the exchange filing.
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The company added that it is closely monitoring developments and will assess any impact arising from the FSSAI's action.
The disclosure comes as a follow-up to an earlier communication made by the company on Aug. 3, providing investors with an update on the regulatory proceedings.
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