In a significant interim order, the Delhi High Court on Tuesday restrained the Food Safety and Standards Authority of India (FSSAI) from taking any action to cancel ITC Limited’s food licence. The ruling, delivered by Justice Swarana Kanta Sharma, provides temporary relief to ITC amidst a dispute over labelling claims on its popular Aashirvaad MP Chakki Atta product.
FSSAI Challenges ITC's Product Claims
The controversy stems from FSSAI notices challenging ITC’s use of claims such as “100% Atta,” “100% Madhya Pradesh Wheat,” and “0% Maida” on its Aashirvaad MP Chakki Atta packaging and advertisements. ITC had filed a petition against these notices.
The court has yet to decide on the crucial question of jurisdiction, as FSSAI has raised objections, arguing that the latest notice originated from its Kolkata authority, thus questioning whether the Delhi High Court is the appropriate forum for the case. Until this jurisdictional matter is resolved, no action can be taken against ITC’s licence. The next hearing is scheduled for September 9.
Timeline of the Dispute
The dispute began with an FSSAI advisory issued in May 2025, which cautioned food companies against using “100%” claims on product labels, packaging, and advertisements. Following this advisory:
- August 10: FSSAI issued a show-cause notice to ITC, alleging non-compliance with the advisory and giving the company 30 days to respond.
- August 13: Just three days later, FSSAI’s Kolkata authority issued an improvement notice. This notice directed ITC to remove the disputed claims from Aashirvaad MP Chakki Atta and submit a compliance report within 15 days, threatening licence suspension for non-compliance.
ITC's Legal Arguments
ITC has argued that the improvement notice was issued prematurely, before the company had a chance to respond to the initial show-cause notice. Furthermore, ITC has questioned the enforceability of an advisory as a basis for such stringent restrictions, contending that an advisory alone cannot impose binding legal requirements.
The company maintains that the core of the dispute revolves around the precise wording of the claims, not the actual quality or composition of the product. ITC highlighted that FSSAI has not alleged that Aashirvaad MP Chakki Atta contains maida or that the wheat used is sourced from outside Madhya Pradesh, focusing solely on the “100%” terminology.