After 98% Compliance, Bombay HC Fines FDA Rs 5 Lakh for Suspending Pune Shop's License

The Bombay High Court on Monday directed the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh in compensation to a Pune-based sweets shop, Gurunanak Dairy and Sweets, for failing to restore its license despite a re-inspection report showing 98 per cent compliance. The court also allowed the shop to reopen its business.

A bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad observed that while the regulator's intent was 'laudable', it had gone 'overboard' by keeping the license suspended even after the compliance report. The bench further noted that the FDA's policy of suspending licenses of eateries and hotels in such cases was 'strange and perverse'.

The trouble for the shop began on June 12, when a food safety officer inspected the premises following a complaint of food poisoning. Concerns were raised over sanitation and staff hygiene. On the same day, the FDA suspended the shop's license. The shop filed an appeal before the FDA Commissioner and submitted a compliance report.

A re-inspection was conducted on July 13, and the shop was found to be 98 per cent compliant. Despite this, the license was not restored. The shop owners then made a representation to the FDA seeking revocation of the suspension order, but no action was taken, prompting them to approach the High Court.

The shop claimed it had lost Rs 8.74 lakh in revenue since its closure in June. The court, while ordering the FDA to pay Rs 5 lakh compensation within a month, said the department should have immediately revoked the suspension once the re-inspection report showed substantial compliance.

FDA Commissioner Tukaram Mundhe said he would examine the order before responding. 'I have to see the order, then I will respond. FDA would act according to the law and prescribed processes. We go as per the law, as per the processes, we follow it, and we implement it,' he added.