Maharashtra Food and Drug Administration (FDA) has suspended the food business licence of Zepto’s Dharavi facility in Mumbai.
The decision follows an inspection revealing severe hygiene violations, including fungal growth on food items, improper storage near stagnant water, and the presence of expired products mixed with fresh stock. This suspension adds to Zepto’s recent operational challenges, including the temporary closure of 44 Zepto Cafe outlets across North India and ongoing delivery worker strikes in Hyderabad. The FDA’s inspection, prompted by a tip-off from a state official, uncovered multiple breaches of the Food Safety and Standards Act, 2006, and related regulations. Findings included food stored directly on wet and dirty floors, malfunctioning cold storage units failing to maintain required temperatures, and expired items not segregated from consumable stock. These conditions pose significant health risks to consumers and violate established food safety norms.
An official from the FDA stated that the licence suspension will remain in effect until Zepto addresses all compliance issues and receives clearance from the licensing authority. The agency emphasized that such actions are part of a broader initiative to ensure public health and safety in food distribution channels. Zepto, operated by Kiranakart Technologies Pvt Ltd, has acknowledged the suspension and expressed commitment to rectifying the identified lapses. The company has initiated an internal review and is cooperating with authorities to implement necessary corrective measures. Zepto’s spokesperson affirmed their dedication to maintaining high standards of food safety and hygiene.
This incident is not isolated; the FDA has also inspected other Zepto facilities in Mumbai, including locations in Bhiwandi, Bandra West, and Borivali, uncovering similar violations. At the Borivali site, the food business licence was previously suspended but later reinstated after compliance measures were implemented. These repeated infractions raise concerns about systemic issues within Zepto’s operational protocols. Compounding Zepto’s challenges, the company recently halted operations at 44 Zepto Cafe outlets across North India due to supply chain disruptions and staffing shortages. Cities affected include Delhi NCR, Agra, Meerut, Haridwar, Gorakhpur, Mohali, Amritsar, and Ghaziabad. The company aims to resume services in these locations by the next quarter, pending resolution of logistical issues.
Additionally, Zepto faces labour unrest in Hyderabad, where delivery workers have initiated an indefinite strike. The Telangana Gig and Platform Workers Union alleges unfair payout reductions and demands standardized earnings across all stores. This strike highlights growing discontent among gig workers in India’s burgeoning quick-commerce sector. Zepto’s rapid expansion in the quick-commerce market has been marked by aggressive growth strategies. However, the recent regulatory setbacks and operational disruptions underscore the challenges of scaling while maintaining compliance and worker satisfaction. As the company navigates these issues, its ability to implement sustainable and equitable practices will be critical to its long-term success.
The suspension of Zepto’s food licence in Dharavi serves as a cautionary tale for the quick-commerce industry, emphasizing the importance of adhering to food safety regulations and maintaining hygienic practices. As urban consumers increasingly rely on rapid delivery services, ensuring the safety and quality of food products remains paramount. The Maharashtra FDA’s decisive action reflects a commitment to public health and sets a precedent for regulatory oversight in the sector. For Zepto, addressing these challenges promptly and transparently will be essential in rebuilding consumer trust and ensuring compliance across its operations.
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