‘You Are Going Overboard’: Bombay HC Imposes ₹5 Lakh Cost on FDA for Keeping Pune Shop Closed

The Bombay High Court reprimanded the Maharashtra Food and Drug Administration (FDA) for maintaining the suspension of a Pune-based sweet shop’s license despite a 98% compliance report, ordering the regulator to pay ₹5 lakh in compensation to the business.

A division bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad permitted the establishment, Gurunanak Dairy and Sweets, to immediately resume operations. The court instructed the department to disburse the compensation within a month to offset the severe financial losses incurred by the business due to the prolonged, unjustified closure.

The case originated from a June 12 inspection following a food poisoning complaint, where an FDA food safety officer raised concerns regarding hygiene and sanitation, leading to an immediate license suspension. The shop owners promptly addressed the issues, filed an official appeal, and submitted a detailed compliance report. Although a subsequent re-inspection on July 13 confirmed that the shop achieved 98% compliance, the FDA failed to restore its license. Facing losses amounting to ₹8.74 lakh since its closure in June, the owners petitioned the High Court for relief.

While acknowledging that the FDA’s enforcement intent was commendable, the High Court characterized its policy of prolonged suspensions as “strange and perverse.” The bench emphasized that the regulator should have immediately revoked the suspension upon verifying the 98% compliance rate rather than needlessly stalling operations.

Responding to the ruling, FDA Commissioner Tukaram Mundhe stated that he would examine the High Court’s order before responding officially, maintaining that the department acts strictly in accordance with prescribed legal procedures and statutory provisions.