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The Bombay High Court has directed Maharashtra’s Food and Drug Administration (FDA) to pay INR 5 lakh to Pune-based Gurunanak Dairy and Sweets after the regulator kept the shop’s licence suspended despite a subsequent inspection finding 98 per cent compliance. The court allowed the establishment to resume operations and criticised the FDA for continuing the suspension after the compliance report. The shop had approached the court claiming losses of INR 8.74 lakh following its closure in June. The court said the regulator’s food-safety objective was commendable but its action had gone beyond what was warranted.
The Bombay High Court has directed Maharashtra’s Food and Drug Administration (FDA) to pay INR 5 lakh to a Pune-based sweets shop after the regulator failed to restore its licence despite a subsequent inspection indicating that the establishment had addressed almost all the deficiencies identified earlier.
The case involved Gurunanak Dairy and Sweets, which challenged the suspension of its food licence before the High Court. The shop claimed that it had suffered a revenue loss of INR 8.74 lakh after being forced to shut operations in June. The court subsequently permitted the business to reopen and ordered the FDA to pay INR 5 lakh to its owners within one month.
The dispute originated after an FDA food safety officer inspected the shop on June 12 following a complaint related to food poisoning. During the inspection, officials raised concerns regarding sanitation and hygiene practices followed at the premises. The FDA suspended the shop’s licence on the same day.
The establishment challenged the action before the FDA Commissioner and submitted details showing that it had taken corrective measures. A fresh inspection was conducted on July 13, following which the shop was assessed as being 98 per cent compliant with the requirements identified during the earlier inspection. Despite the improved compliance position, the licence remained suspended.
The shop owners subsequently made a representation to the FDA seeking withdrawal of the suspension. When the matter remained unresolved, they approached the Bombay High Court, arguing that the continued closure was causing financial losses despite the substantial compliance recorded during the re-inspection.
A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad questioned the FDA’s decision to continue the suspension after the re-inspection. The bench observed that while the regulator’s objective of enforcing food-safety standards was commendable, the approach adopted in the case had gone too far.
The court also described the FDA’s policy of suspending licences of eateries and hotels in such circumstances as “strange” and “perverse”. It indicated that once the establishment had demonstrated 98 per cent compliance, the regulator should have considered revoking the suspension rather than allowing the closure to continue.
The order highlights the balance regulators need to maintain between enforcing food-safety standards and ensuring that corrective action by businesses is recognised promptly. While authorities have the power to intervene where public health concerns arise, the court’s observations underline the need for proportionate regulatory action once identified deficiencies have been substantially addressed.
Maharashtra FDA Commissioner Tukaram Mundhe said he would examine the court’s order before responding. He said the department would operate in accordance with the applicable law and prescribed procedures.
Source- PTI
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