Bombay High Court Directs Maharashtra FDA to Pay ₹5 Lakh Compensation to Pune Sweets Shop
The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh in compensation to a Pune-based shop after authorities failed to revoke the suspension of its operating licence despite a re-inspection showing 98 percent compliance.
What Happened
A Bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad permitted Pune-based Gurunanak Dairy and Sweets to resume operations and mandated that the Maharashtra FDA disburse ₹5 lakh in compensation to the proprietors within one month. The establishment approached the High Court after facing closure since June, reporting a loss of ₹8.74 lakh in revenue during the suspension period.
According to the petition, an FDA food safety officer visited the shop premises on June 12 after receiving a complaint regarding food poisoning, noting issues regarding staff hygiene and sanitation. The regulatory authority issued a licence suspension order that very day. The shop subsequently lodged an appeal with the FDA Commissioner and submitted a compliance report. Although a re-inspection conducted on July 13 verified that the establishment had reached 98 percent compliance, the licence was not reinstated. A follow-up representation to the FDA went unanswered, prompting the owners to seek relief from the High Court.
Key Highlights
- The Bombay High Court ordered the FDA to pay ₹5 lakh compensation to Gurunanak Dairy and Sweets within one month.
- The court permitted the business to immediately reopen after being closed since June.
- The shop recorded ₹8.74 lakh in revenue losses due to the prolonged suspension.
- A re-inspection on July 13 demonstrated 98 percent compliance, yet the suspension remained in force.
- The Bench remarked that while the regulatory intent was commendable, the authority was going “overboard” and described the blanket suspension approach as a “strange policy and perverse.”
Why This Matters
The High Court observed that while the regulatory body’s intention to enforce standards was laudable, enforcement went “overboard” by failing to restore operations once substantial compliance was achieved. The Bench pointed out that the regulator ought to have revoked the suspension immediately after the 98 percent compliance benchmark was confirmed during the re-inspection, highlighting judicial scrutiny over regulatory delays affecting commercial livelihoods.
What to Watch Next
The FDA is required to remit the ₹5 lakh compensation within the one-month window established by the court. In response to the ruling, FDA Commissioner Tukaram Mundhe stated that he would examine the judicial order before providing a formal response, adding that the department functions, implements, and proceeds in accordance with the law and prescribed processes.
Frequently Asked Questions
Why did the Maharashtra FDA suspend the shop’s licence?
The licence was suspended on June 12 following a food safety officer’s inspection prompted by a food poisoning complaint, which raised concerns over sanitation and staff hygiene.
Why did the Bombay High Court penalise the FDA?
The High Court held that the FDA should have promptly revoked the suspension after a July 13 re-inspection demonstrated 98 percent compliance, noting that prolonged inaction caused business losses.
How much compensation did the court award?
The court directed the FDA to pay ₹5 lakh in compensation to the shop owners within a period of one month.
Source: The Hindu