The Bombay High Court has directed Maharashtra’s Food and Drug Administration (FDA) to promptly withdraw the suspension or cancellation of food-business licences when establishments have corrected the deficiencies identified during inspections and subsequent reports show regulatory compliance.
The order was passed by a division bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad while hearing a petition filed by Siddharth Agro, an establishment involved in milk chilling, storage and supply. The court also said the FDA should not force businesses to approach the judiciary to obtain relief from a suspension that no longer serves a regulatory purpose.
According to the report placed before the court, the FDA’s handling of licence-suspension cases showed a recurring pattern. In several cases, establishments had addressed the deficiencies identified by inspectors, but the suspension or cancellation orders were not withdrawn even after compliance was established.
The bench observed that such inaction prevents establishments from carrying out their business and causes financial losses. It can also affect employees and supply chains connected to the business. Requiring an establishment to approach a court merely to have an ineffective order revoked, the court said, was not justifiable and created avoidable pressure on both the business and the judiciary.
The Siddharth Agro case arose after an inspection of the petitioner’s premises in July found certain deficiencies. The FDA subsequently cancelled the establishment’s licence. The business said it had corrected the deficiencies and asked FDA officials to inspect the premises again and revoke the suspension if they were satisfied with the compliance.
During the hearing, FDA counsel Pribhushan Kakade told the court that a further inspection had found some deficiencies still unresolved. The petitioner, however, informed the bench that it had subsequently addressed all the newly identified deficiencies and had again requested a fresh inspection.
The court directed the FDA to conduct another inspection of the premises and revoke the licence suspension if the establishment was found to have complied with the applicable food-safety requirements.
The bench said the FDA must promptly withdraw suspension or cancellation orders in all cases where the relevant deficiencies have been properly addressed in accordance with statutory and regulatory requirements. It said the approach was necessary to prevent similar instances and to ensure that the statutory regulator functions fairly, efficiently and proportionately.
The order places responsibility on the FDA to reassess regulatory action after compliance is demonstrated, rather than allowing a suspension to continue without a current regulatory basis. The immediate next step in the case is the fresh inspection of Siddharth Agro’s premises and a decision on withdrawal of the suspension.
