Bombay HC Orders Maharashtra FDA To Pay ₹5 Lakh To Pune Sweet Shop Over Licence Suspension

Mumbai: The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh compensation to a Pune sweets shop for failing to revoke its licence suspension despite the establishment achieving 98% compliance during a re-inspection. 

The court also quashed the suspension order, allowing Gurunanak Dairy and Sweets to resume operations. The shop had remained shut for 34 days following the FDA’s action, suffering an estimated revenue loss of Rs 8.74 lakh.

Calling the FDA’s approach “plain and simple perversity” and a “strange policy”, a bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad directed the department to pay the compensation within 30 days.

“We have observed that your intention is laudable and some department has at least stood up. But you are going overboard. You should have immediately revoked the suspension of the licence once you noticed 98% compliance,” the bench observed.

The court was hearing a petition filed by Gurunanak Dairy and Sweets challenging the June 12 suspension of its food licence.

The FDA had acted against the Pune establishment following complaints of food poisoning. During an inspection, officials found deficiencies relating to sanitation, hygiene and maintenance.

The shop subsequently approached FDA Commissioner Tukaram Mundhe and submitted a compliance report on July 9, addressing the shortcomings. Four days later, an FDA official conducted a fresh inspection and awarded the establishment 35 out of 36 marks, indicating 98% compliance with food safety requirements.

Despite the favourable re-inspection report, the FDA did not restore the licence, forcing the shop to approach the High Court.

Advocate Abhijeet Desai, appearing for the petitioner, told the court that the business had remained closed for 34 days, causing a revenue loss of Rs 8.74 lakh.

Desai pointed out that neither the inspection report nor the suspension order attributed any specific illness or adverse health consequences to any food article sold by the sweet shop. 

The FDA’s lawyer defended the delay, stating that the petitioner’s appeal had been heard and reserved for judgment on August 11.

The explanation did not find favour with the bench.

“Once you clear with 98%, you say, now, go and file an appeal. What is this? Torturing citizens?” Acting Chief Justice Ghuge remarked.

The court subsequently cancelled the suspension and ordered the FDA to compensate the sweets shop for the loss caused by its continued closure.

Early this month, the HC had rapped the FDA for not revoking the suspension of Hotel Pawan Bar and Restaurant in Navi Mumbai even after a re-inspection found the establishment to be 100% compliant with food safety norms. While revoking the suspension order, the bench had then orally remarked that it intended to impose costs on the department for the losses suffered by the restaurant owner.

In July, the HC had criticised the regulator for its selective action against eateries, terming its approach “biased”. It had questioned the FDA for not taking action against canteens in Mantralaya and other government and semi-government establishments.

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