On Monday, the Bombay High Court (HC) ordered the Maharashtra Food and Drug Administration (FDA) to pay compensation of Rs 5 lakh to a Pune-based sweet shop, after the regulator kept its licence suspended despite a 98 per cent compliance report.
The court observed that while the FDA’s intentions were commendable, it had “gone overboard”, according to news agency PTI.
A bench led by Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad characterised the FDA’s practice of suspending licences of eateries and hotels as “strange” and “perverse”.
FDA Commissioner Tukaram Mundhe told PTI that he would review the court’s order before issuing a response.
Gurunanak Dairy and Sweets had contested the FDA’s decision before the High Court, claiming it had incurred a revenue loss of Rs 8.74 lakh following its closure in June.
The bench allowed the shop to resume operations and ordered the department to pay the owners Rs 5 lakh in compensation within a month.
“We acknowledge that your intention is commendable and that at least one department has taken a stand. However, you are exceeding reasonable limits. You should have promptly revoked the suspension of the licence once you observed 98 per cent compliance in the re-inspection report,”Bombay High Court
The petition states that an FDA food safety officer inspected the shop on June 12 after receiving a food poisoning complaint and identified issues related to sanitation and employee hygiene. The department revoked the shop’s license that same day.
The shop subsequently filed an appeal before the FDA Commissioner and submitted a compliance report.
A re-inspection was conducted on July 13, following which the shop was found to be 98 per cent compliant. However, its licence was not restored.
The shop owners then submitted a representation to the FDA seeking revocation of the suspension order, but no action was taken. They subsequently approached the court.
Mundhe said he would examine the court order before responding.
“I have to see the order, then I will respond. FDA would act according to the law and prescribed processes. We go as per the law, as per the processes, we follow it, and we implement it,” he added.