The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay a compensation of ₹5 lakh to a Pune-based sweet shop, Gurunanak Dairy and Sweets, following the prolonged suspension of its food license despite the establishment achieving nearly full compliance with hygiene standards.
Court Questions Prolonged Suspension
A division bench, comprising Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad, vehemently questioned the FDA's decision to keep the shop's license suspended for 34 days. The court noted that the establishment had achieved 98 percent compliance with safety and hygiene requirements during a re-inspection, yet the license was not restored.
The bench remarked on the FDA's actions as "absolute strange policies" and characterized the continued closure as "harassment." The court emphasized that while enforcing food safety standards is crucial, the authority had overstepped its bounds in this particular instance.
Background of the Dispute
Gurunanak Dairy and Sweets initially faced license suspension on June 12 after an inspection revealed deficiencies in hygiene and sanitation. The shop promptly submitted a compliance report and challenged the suspension. A subsequent re-inspection on July 13 confirmed that the establishment met 35 out of 36 required parameters, demonstrating a significant improvement.
Despite this high compliance score, the FDA refused to revoke the suspension, citing a pending appeal before the FDA Commissioner. The shop's lawyer informed the court that the unwarranted closure had led to substantial revenue losses, estimated at around ₹8.5 lakh.
High Court Ruling
The High Court ultimately quashed the continued suspension of the food license, allowing Gurunanak Dairy and Sweets to resume its operations immediately. Furthermore, it ordered the Maharashtra FDA to pay the ₹5 lakh compensation within 30 days. This ruling underscores the judiciary's stance on ensuring regulatory bodies act with justification and do not unduly penalize businesses that rectify violations.
This development comes amidst an intensified drive by the Maharashtra FDA to conduct food-safety inspections across the state. Recently, the department inspected 86 establishments selling food via online delivery platforms, issuing 60 improvement notices and suspending 14 food business licenses.