Bombay HC Orders Maharashtra FDA to Pay ₹5 Lakh to Pune Sweet Shop

The Bombay High Court on Monday ordered the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh in compensation to Gurunanak Dairy and Sweets in Pune for continuing to suspend the shop’s food licence despite a re-inspection finding 98% hygiene compliance.

A division bench of acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad revoked the suspension of the food licence and termed the regulator's ongoing action "harassment" and "absolute torture". The court instructed the FDA to pay the ₹5 lakh compensation to the petitioner within 30 days.

The sweet shop had approached the high court after the FDA suspended its licence on June 12 following a food poisoning complaint. Following the suspension, the shop submitted a compliance report on July 9. The FDA carried out a re-inspection and issued a 98% compliance report on July 13. However, authorities did not revoke the licence suspension.

Advocates Abhijeet Desai, Mohini Rehpade, Vijay Singh, and Deepesh Ramrakhiani, appearing for the petitioner, told the court that the 34-day closure resulted in a business loss of ₹8.74 lakh. The lawyers argued that the licence remained suspended despite meeting high compliance benchmarks.

In its defence, the FDA argued that the licence had not been restored because the shop owner had filed an appeal before the FDA commissioner. The regulator stated that the appeal had been heard and a final order was pending.

The bench dismissed the regulator’s reasoning, questioning why the establishment was subjected to prolonged suspension and forced through an appellate procedure after receiving a 98% compliance certification.

Observing that the FDA's stance amounted to "plain harassment and simple perversity", the judges noted that while the agency's initial intent was laudable, officials had gone overboard. The court stated that the authority should have immediately revoked the suspension upon noting the 98% compliance result.