Hospitality Industry Seeks PM, CM Intervention Over FDA Enforcement Drive In Maharashtra; Reiterate Demand Of Serving Improvement Notices & Avoid Name & Shame

Mumbai: Major industry bodies representing India's hospitality and restaurant sector have jointly urged the Prime Minister, Maharashtra Chief Minister and the Food Safety and Standards Authority of India (FSSAI) to enforce due process and protect businesses amid an aggressive compliance drive by the Maharashtra Food and Drug Administration (FDA).

Associations Challenge Maharashtra FDA Compliance Order

The joint representation - signed by the Hotel and Restaurant Association Western India (HRAWI), the National Restaurant Association of India (NRAI) and the Indian Hotel and Restaurant Association (AHAR) - emphasises that while the industry fully supports stringent food safety measures, current enforcement tactics violate established statutory procedures. At the heart of the dispute is a compliance order issued by the Maharashtra FDA on June 23, 2026. Industry representatives assert that the order contains directives inconsistent with the Food Safety and Standards (FSS) Act, 2006, and was implemented without mandatory stakeholder consultations.

According to the associations, section 32 of the FSS Act mandates a minimum 14-day improvement notice allowing food business operators (FBOs) to rectify specific non-compliances before license suspension or cancellation occurs. Associations report that licenses are being abruptly suspended or revoked without this statutory buffer. It highlighted that the authority has publicly released business names, photographs and video footage before investigations or appeals are concluded. Trade bodies argue this creates irreversible financial and reputational harm, even when allegations are later cleared or corrected.

Industry Raises Concern Over Lack of Consultation

Highlighting lack of consultation, the associations have stated that the legislative intent of the FSS Act encourages collaborative regulatory updates but the June 23 order bypassed prior dialogue with representative associations. "The hospitality industry has no objection to enforcement or inspections aimed at ensuring food safety and public health. However, the sudden suspension or termination of licences without prior notice or opportunity for corrective action is a matter of grave concern," the joint statement stated.

The associations highlighted that the hospitality and food services sector serves as a crucial employment driver and tourism catalyst across the country with around 3.2 crore jobs supported including direct employment to over 85 lakh people, annual tax contribution of Rs 33,809 crore and GDP contribution of 5.8%. Overall it also highlighted that it caters to around heavy inflow of tourists in Maharashtra, which were recorded at 189 million for domestic and 3.7 million foreign arrivals.

The trade association warned that unpredictable regulatory actions risk alarming investors, destabilising small and mid-sized enterprises (SMEs) and disrupting the livelihoods of daily-wage and migrant workers when the state aims to attract Rs 1 lakh crore in fresh investments and generate over 30 lakh new jobs under the Maharashtra Tourism Policy 2024.

The associations clarified that they are not seeking a relaxation of food safety standards, but rather the consistent application of natural justice. They have urged the PM, CM and the FSSAI to review the June 23 compliance order and conform strictly with the national FSS Act framework, ensure improvement notice mechanism is uniformly respected across all districts before taking punitive measures, cease media and public disclosures until administrative procedures and convene a high-level dialogue involving the CM, regulatory authorities and trade leadership to establish a fair compliance roadmap.

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