17 August,2026 10:58 PM IST | Mumbai | mid-day online correspondent
The shop had challenged the FDA’s action before the Bombay HC, stating that it had suffered a revenue loss of Rs 8.74 lakh since its closure in June. FILE PIC
The Bombay High Court (HC) on Monday directed the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh compensation to a Pune-based sweets shop for keeping its licence suspended despite a 98 per cent compliance report, noting that the regulator's intention was laudable but it was "going overboard", news agency PTI reported.
A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad described the FDA's policy of suspending licences of eateries and hotels as "strange" and "perverse".
Meanwhile, FDA Commissioner Tukaram Mundhe told PTI that he would examine the court order before responding.
The shop, Gurunanak Dairy and Sweets, had challenged the FDA's action before HC, stating that it had suffered a revenue loss of Rs 8.74 lakh since its closure in June.
The bench permitted the shop to reopen and directed the department to pay the owners Rs 5 lakh in compensation within a month.
"We have observed that your intention is laudable and some department has at least stood up. But you are going overboard. You should have immediately revoked the suspension of the license once you noticed 98 per cent compliance (in the re-inspection report)," the bench said.
According to the petition, an FDA food safety officer inspected the shop on June 12 following a complaint of food poisoning and raised concerns over sanitation and staff hygiene. The department suspended the shop's licence on the 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.
(With PTI inputs)
