The Bombay High Court has directed the Maharashtra Food and Drugs Administration (FDA) to pay Rs 5 lakh in compensation to a Pune-based sweets shop after its food licence remained suspended despite the establishment achieving 98% compliance during a subsequent inspection.
A bench comprising Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad criticised the FDA for failing to restore the licence promptly after the shop addressed the deficiencies identified during an earlier inspection.
The court also permitted Gurunanak Dairy and Sweets, located in Wadgaon-Sheri, Pune, to resume operations. The FDA has been given one month to pay the compensation.
The High Court acknowledged that the FDA's efforts to enforce food safety standards were important but said the department had gone too far in the present case.
The bench questioned why the licence was not restored after a re-inspection found the establishment to be substantially compliant.
The court observed that once the shop had achieved 98% compliance, the FDA should have taken immediate steps to revoke the suspension rather than continuing with the restriction.
The judges described the department's approach as a “strange policy” and criticised the continued suspension as an instance of administrative perversity.
The FDA took action against the Pune sweets shop on June 12 after receiving a complaint related to food poisoning.
During its inspection, the food safety authorities raised concerns about several aspects of the premises, including sanitation, maintenance and staff hygiene. Based on these observations, the shop's food licence was suspended on the same day.
The owners subsequently challenged the action before the FDA Commissioner and submitted a compliance report explaining the corrective measures taken to address the deficiencies.
The shop submitted its compliance report to FDA Commissioner Tukaram Mundhe on July 9.
Four days later, FDA officials conducted a fresh inspection of the premises. The establishment reportedly scored 35 out of 36 marks, equivalent to 98% compliance with the applicable food safety requirements.
Despite the strong compliance result, the licence was not restored.
The shop owners then submitted another representation requesting that the suspension be revoked. When no action followed, they approached the Bombay High Court.
During the hearing, advocate Abhijeet Desai, appearing for the petitioner, told the court that the business had remained closed for more than a month because of the licence suspension.
The petitioner claimed that the closure had resulted in a revenue loss of around Rs 8.5 lakh.
The FDA, meanwhile, sought to justify the delay by stating that the shop's appeal had been heard and the matter had been reserved for judgment on August 11.
The court did not accept this explanation, reportedly describing it as a “lame excuse”.
The Bombay High Court ultimately set aside the continued suspension and allowed Gurunanak Dairy and Sweets to restart its business.
The court also ordered the Maharashtra FDA to pay Rs 5 lakh as compensation within 30 days, taking into account the circumstances surrounding the prolonged suspension.
The ruling highlights the need for food safety authorities to enforce regulations firmly while also ensuring that corrective action taken by businesses is recognised promptly and administrative decisions remain proportionate.