FDA went ‘overboard’ in Pune shop case, Bombay HC orders Rs 5 lakh compensation

The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh compensation to a Pune-based sweets shop after its food licence remained suspended despite a re-inspection finding 98 per cent compliance.

The court also allowed Gurunanak Dairy and Sweets to resume operations, observing that the regulator's efforts to enforce food safety were justified but its action in the case had gone too far.

Court questions FDA’s decision

A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad criticised the FDA's approach to suspending licences of eateries and hotels, describing the policy as a "strange policy and perverse".

Also Read | 'If airlines are not complying, ground them': Supreme Court pulls up Centre on aviation rules

The shop had approached the High Court after its licence was suspended following an inspection on June 12. The inspection was conducted after a complaint of food poisoning, with the food safety officer raising concerns about sanitation and staff hygiene.

The FDA suspended the shop's licence on the same day.

Gurunanak Dairy and Sweets subsequently appealed against the order before the FDA Commissioner and submitted a compliance report.

Shop claimed Rs 8.74 lakh loss

A re-inspection was conducted on July 13, and the premises were found to be 98 per cent compliant. However, the shop's licence was not restored.

The owners then approached the FDA again, seeking revocation of the suspension. With no action taken on their representation, they moved the High Court.

The shop told the court that the continued closure had caused losses of Rs 8.74 lakh in revenue since June.

While allowing the business to reopen, the bench ordered the FDA to pay Rs 5 lakh to the owners within a month.

"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 license once you noticed 98 per cent compliance (in the re-inspection report)," the bench said.

FDA commissioner to examine order

FDA Commissioner Tukaram Mundhe said he would examine the court's order before commenting on it.

Also Read | Are courts precluded from granting fair, just compensation in nuclear accident: SC asks Centre

"I have to see the order, then I will respond. FDA would act according to the law and prescribed processes. We go as per the law, as per the processes, we follow it, and we implement it,” he added.

The court's order comes as the FDA continues to enforce food safety standards across eateries and other establishments. In this case, however, the bench found that keeping the licence suspended after the shop had substantially complied with the requirements warranted compensation.