Bombay High Court Calls Maharashtra FDA Action ‘Overboard’, Orders INR 5 Lakh to Pune Sweet Shop
The Bombay High Court has ordered Maharashtra FDA to pay INR 5 lakh to Pune-based Gurunanak Dairy and Sweets after its licence remained suspended despite a re-inspection finding 98% compliance. The court allowed the shop to reopen and said the FDA was 'going overboard'. The shop had claimed losses of INR 8.74 lakh since its closure in June following a food poisoning complaint.
The Bombay High Court on Monday, August 17, came down heavily on the Maharashtra Food and Drugs Administration (FDA) and ordered it to pay INR 5 lakh to Pune-based Gurunanak Dairy and Sweets for keeping its licence suspended despite a 98 per cent compliance report. The court permitted the shop to reopen and directed the department to pay the compensation within a month.
The bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad said the FDA's intent in carrying out food safety inspections was commendable, but the department was "going overboard", PTI reported. The court also described the FDA's practice of suspending licences of eateries and hotels as a "strange policy and perverse". Burger King Sealed: Maharashtra FDA Seals Iconic Eatery in Pune’s Camp, Suspends Licence Over Food Safety Violations.
Bombay HC Orders Maharashtra FDA to Pay INR 5 Lakh to Pune Sweet Shop
News Alert! Bombay HC imposes Rs 5 lakh cost on FDA for keeping license of Pune-based sweet shop suspended despite compliance pic.twitter.com/L9hkIW4cWv
— Press Trust of India (@PTI_News) August 17, 2026
FDA Licence Suspended After Inspection
The case relates to an inspection carried out at Gurunanak Dairy and Sweets in Pune on June 12 by a food safety officer from the FDA following a complaint of food poisoning.
During the inspection, the officer raised concerns over sanitation and staff hygiene. The same day, the department passed an order suspending the shop's licence. Maharashtra FDA Suspends Blinkit, Zepto, Instamart Licences Over Severe Hygiene And Pest Violations.
The shop subsequently filed an appeal before the FDA Commissioner and submitted a compliance report addressing the concerns raised during the inspection.
Re-Inspection Found 98% Compliance
A re-inspection was carried out on July 13. According to the shop's plea, the premises were found to be 98 per cent compliant. Despite the findings, the licence was not restored.
The shop owners then submitted a representation to the FDA seeking revocation of the suspension order. They said no action was taken on their representation, prompting them to approach the Bombay High Court. Gurunanak Dairy and Sweets told the court that it had lost INR 8.74 lakh in revenue since the shop was closed in June.
Bombay HC Says FDA Went ‘Overboard’
While allowing the shop to resume business, the bench criticised the FDA for failing to restore the licence after the re-inspection showed substantial compliance. "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 court said.
The court said food safety inspections serve an important purpose but indicated that regulatory action should remain proportionate to the circumstances. The bench also described the FDA's order suspending licences of eateries and hotels as a "strange policy and perverse".
INR 5 Lakh Compensation Ordered
The High Court directed the Maharashtra FDA to pay INR 5 lakh compensation to the owners of Gurunanak Dairy and Sweets within a month. The court's order also clears the way for the Pune shop to reopen its business. The compensation awarded by the court is lower than the INR 8.74 lakh in revenue loss claimed by the shop for the period it remained closed.
The court did not question the need for food safety inspections. Instead, its observations focused on the FDA's handling of the licence suspension after the shop had submitted corrective measures and a subsequent inspection found 98 per cent compliance.
The case highlights the balance regulators must maintain between enforcing food safety standards and ensuring that punitive or restrictive measures remain proportionate once deficiencies are addressed.
The Bombay High Court's directions also underscore the importance of timely action by regulatory authorities when businesses submit compliance reports and seek review of suspension orders.
(The above story first appeared on LatestLY on Aug 17, 2026 04:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
