High Court Orders FDA to Compensate Sweets Seller for Unlifted Suspension Despite Compliance
MUMBAI: The Bombay High Court has ordered the Food and Drugs Administration (FDA) to pay Rs 5 lakh to a Pune-based dairy and sweets retailer, M/s Gurunanak Dairy and Sweets, for losses incurred due to the suspension of its food license. The court also vacated the suspension order, allowing the business to reopen after the retailer achieved 98% compliance with safety norms.
The suspension of the retailer’s license occurred on June 12 following a food poisoning incident. The FDA ordered the closure without providing an improvement notice or a hearing. After a re-inspection on July 13 confirmed 98% compliance, the suspension remained in effect. An appeal was filed with the FDA commissioner on July 15, but the lack of resolution prompted the retailer to seek relief from the High Court.
During the proceedings, the retailer’s advocate, Abhijeet Desai, argued that the FDA failed to revoke the suspension despite the compliance achieved. He referenced a similar case involving another Pune establishment, Pind Punjab, where the court ruled that a suspension became void after confirming compliance. The judges criticized the FDA’s handling of the situation, stating that the suspension should have been lifted immediately upon recognizing the 98% compliance. Justice Ghuge remarked on the “plain and simple perversity” of the FDA’s actions, emphasizing that the pending appeal should not have hindered the revocation of the license.
The court noted that the retailer’s daily earnings were approximately Rs 25,000, leading to a total loss of Rs 8.5 lakh over the 34 days since compliance was achieved. The judges deemed the FDA’s justification for maintaining the suspension unconvincing and ordered the agency to deposit the compensation amount in court within 30 days, allowing the retailer to withdraw the funds.
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