Bombay High Court Orders ₹5 Lakh Compensation to Pune Sweets Shop After FDA Delays License Restoration

Bombay High Court orders Rs 5 lakh compensation for Pune sweets shop over license suspension.

Mumbai: The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh in compensation to a Pune-based sweets shop after finding that the department failed to restore its food licence despite the establishment being found 98% compliant during a follow-up inspection.

The court also allowed the shop, Gurunanak Dairy and Sweets, to resume its business after it challenged the continued suspension of its licence. The shop owners had approached the High Court after repeated requests to the food safety authorities for restoration of the licence failed to bring any relief.

A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad criticised the FDA’s approach, observing that although the department’s intention to ensure food safety was commendable, it had gone too far by continuing the suspension even after substantial compliance had been established.

The court described the FDA’s policy of suspending licences of eateries and hotels in such circumstances as a “strange policy” and “perverse”.

Dispute Began After Food Safety Inspection

The matter began after a food safety officer inspected the Pune shop on June 12 following a complaint related to food poisoning.

During the inspection, the officer raised concerns regarding sanitation and hygiene practices at the premises, including issues related to cleanliness and staff hygiene. On the same day, the FDA suspended the shop’s food licence.

The action forced the business to shut down, resulting in significant financial losses for the owners.

The shop subsequently challenged the suspension before the FDA Commissioner and submitted a compliance report explaining the steps taken to address the concerns raised during the inspection.

A crucial development came on July 13, when FDA officials carried out another inspection of the premises. During this re-inspection, the shop was reportedly found to be 98% compliant with the required food safety and hygiene standards.

Despite the substantial improvement, the shop’s licence was not restored.

Shop Claims ₹8.74 Lakh Revenue Loss

The continued closure had a serious financial impact on the business.

According to the petition filed before the Bombay High Court, Gurunanak Dairy and Sweets had suffered a loss of approximately ₹8.74 lakh in revenue since it was forced to close in June.

The owners also submitted another representation to the FDA requesting that the suspension be revoked in view of the positive findings from the July 13 re-inspection.

However, when no action was taken on their request, the shop owners decided to approach the High Court.

The petition argued that continuing to keep the licence suspended despite the shop being found largely compliant was unfair and had caused unnecessary financial hardship.

Court Questions FDA’s Decision

During the hearing, the High Court took a strong view of the FDA’s decision to continue the suspension.

The bench observed that once the re-inspection report showed 98% compliance, the department should have reconsidered its earlier decision and restored the licence instead of continuing with the suspension.

The judges noted that the FDA’s objective of ensuring food safety was a legitimate one, but regulatory action should remain proportionate and should not unnecessarily harm businesses that have taken corrective measures.

The court reportedly observed that the department’s intention was laudable, but that it had gone “overboard” by failing to act after the shop had substantially complied with the requirements.

The judges questioned why the licence had not been restored after the re-inspection demonstrated that most of the concerns had been addressed.

₹5 Lakh Compensation Ordered

Taking into account the circumstances, the Bombay High Court directed the Maharashtra FDA to pay ₹5 lakh as compensation to the shop owners.

The department has been given one month to make the payment.

At the same time, the court permitted Gurunanak Dairy and Sweets to reopen and resume its business.

The order provides relief to the shop after weeks of uncertainty and financial losses caused by the suspension.

FDA Commissioner to Examine Court Order

Maharashtra FDA Commissioner Tukaram Mundhe said that he would examine the court’s order before commenting on the matter.

He indicated that the department would follow the law and the prescribed regulatory procedures while dealing with such cases.

The FDA has maintained that its actions are based on food safety regulations and established processes. The department’s responsibility is to ensure that food establishments comply with hygiene and safety requirements so that consumers are not exposed to health risks.

The case, however, raises questions about how regulatory authorities should balance food safety enforcement with the interests of businesses that quickly address violations identified during inspections.

Larger Question Over Food Safety Enforcement

The Bombay High Court’s decision comes at a time when food safety authorities across Maharashtra have been under increased scrutiny over inspections and enforcement actions against restaurants, hotels, sweet shops and other food businesses.

Food safety regulations are essential for protecting consumers, particularly when complaints involving food poisoning or unhygienic conditions are received. Authorities have the responsibility to take action when serious violations are discovered.

At the same time, businesses that correct deficiencies identified during inspections expect regulators to reconsider punitive measures once compliance has been established.

In the Pune shop’s case, the court’s observation focused on this very balance. While the FDA was justified in acting on the initial concerns, the judges questioned the decision to keep the licence suspended even after a subsequent inspection found the establishment to be 98% compliant.

The court’s decision therefore sends a message that regulatory agencies must not only enforce safety standards but also ensure that their actions remain reasonable, proportionate and responsive to subsequent compliance.

For Gurunanak Dairy and Sweets, the ruling means the business can now reopen and attempt to recover from the losses suffered during the closure. The ₹5 lakh compensation ordered by the court also provides some financial relief to the owners.

The case is likely to draw attention among food businesses across Maharashtra, particularly those facing licence suspensions following inspections. It highlights the importance of maintaining proper hygiene and safety standards while also emphasising that regulatory authorities must act promptly when businesses demonstrate that they have corrected identified shortcomings.

The Bombay High Court’s order ultimately reinforces the need for a balanced approach: food safety rules must be strictly enforced, but businesses that demonstrate substantial compliance should not face prolonged regulatory action without adequate justification.

News source: Information for this article was gathered from a variety of reliable news outlets.