'Going Overboard': Rs 5 Lakh Fine On Maharashtra Food Body For Not Restoring Pune Shop's License

The Bombay High Court on Monday directed the Maharashtra FDA to pay Rs 5 lakh compensation to a Pune-based sweets shop for keeping its license suspended despite a 98 per cent compliance report and causing losses, noting the regulator's intent is laudable, but it's going "overboard".

A bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad said the Food and Drug Administration's order suspending licenses of eateries and hotels was a "strange policy and perverse".

Meanwhile, FDA Commissioner Tukaram Mundhe told PTI that he would examine the order before responding.

The shop, Gurunanak Dairy and Sweets, had challenged the FDA's action in the high court and said it had lost Rs 8.74 lakh in revenue since its closure in June.

The bench, while permitting the shop to reopen its business, ordered the department to pay the owners Rs 5 lakh compensation 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.

The petition stated that a food safety officer from the FDA inspected the shop premises on June 12 following a complaint of food poisoning, and raised concerns over sanitation and staff hygiene. The same day, the department passed an order suspending the shop's license.

The shop filed an appeal before the FDA Commissioner and also submitted a compliance report.

On July 13, a re-inspection was carried out, and the shop was found to be 98 per cent compliant, but the license was not restored.

The shop owners then submitted a representation to the FDA seeking revocation of the suspension order, but no action was taken, following which they moved the High Court.

Mundhe said he would examine the order before responding.

"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. 

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