Delhi HC grants interim relief to ITC, stays FSSAI licence cancellation over '100%' claims

The Delhi High Court on Tuesday asked the Food Safety and Standards Authority of India (FSSAI) not to cancel ITC Ltd.'s licence for now, in a case involving the conglomerate's use of the term “100%” on its product, 'Aashirvaad M.P. Chakki Atta'. Justice Swarana Kanta Sharma granted interim protection to ITC on its petition challenging FSSAI advisories and notices, which directed the company to remove all “100%” claims from the product's labels, packaging, and promotional material or face suspension of its FSSAI licence.

“Since the issue regarding jurisdiction is to be decided and the courts will be closed, till the next date of hearing, no decision regarding cancellation of the license will be taken,” Justice Sharma said. The case is listed for further hearing on September 9. The court also indicated that it would pass an order on August 31 on the maintainability of a separate petition filed by AWL Agri Business Limited against FSSAI, which also faces similar regulatory action.

AWL Agri Business Limited, the company behind 'Fortune Soya Health Refined Soyabean Oil', received FSSAI notices over allegedly misleading label declarations and claims, including “100% Veg” and “Cholesterol Free – For Healthy Lifestyle”. The notices were issued following an FSSAI advisory in May 2025 that asked all food business operators to discontinue the usage of “100%” on food product labels, packaging, and promotional content.

In the case of ITC, a notice dated August 10, 2025, called upon the company to clarify within 30 days why no action should be taken for failing to comply with the advisory. The notice stated that claims such as “100% Atta & 100% Madhya Pradesh Wheat” on the label and “Made from 100% M.P. Wheat only” in advertisements were misleading and impermissible under the regulations.

Three days later, on August 13, the Central Licensing Authority in Kolkata issued an improvement notice directing ITC to remove the claim or term “100% Atta & 100% Madhya Pradesh Wheat” along with “0% Maida” across all labels and advertisements of 'Aashirvaad M.P Chakki Atta'. The improvement notice gave the company 15 days to submit a compliance report, failing which its FSSAI licence could be suspended.

ITC challenged the improvement notice in court, arguing that it was issued even before the expiry of the 30-day period granted to the company to respond to the initial allegations. The company described the notice as effectively a final order of prohibition. ITC also alleged that the notice was “non-speaking, mechanical, and without any application of mind” and that the threat of licence suspension was “completely arbitrary and grossly disproportionate”.

During Tuesday's hearing, FSSAI's counsel objected to the maintainability of ITC's petition in Delhi, contending that the latest improvement notice was issued in Kolkata. The court did not delve into the merit of that argument, instead granting interim relief while the jurisdictional issue remains pending.

The case highlights the ongoing regulatory scrutiny of food labelling practices in India. FSSAI has taken a strict stance against claims that could be seen as misleading consumers, particularly those using absolute terms like “100%”. The outcome of these petitions will have implications for how food companies market their products in the country.

Both ITC and AWL Agri Business Limited have sought legal remedies against the FSSAI's directives. The court's interim order provides temporary relief to ITC, ensuring no immediate disruption to its business operations over the labelling issue. The next hearing on September 9 will address the substantive questions, including the maintainability of the petitions and the validity of the FSSAI notices.