The Bombay High Court fined the Maharashtra Food and Drug Administration ₹5 lakh for the prolonged license suspension of a Pune sweet shop [1].
The ruling highlights the legal boundaries of regulatory power, signaling that government agencies cannot maintain punitive closures when a business has met safety standards.
The dispute centered on Gurunanak Dairy and Sweets, which the FDA closed in June 2023 [4]. The agency initially suspended the shop's license based on concerns regarding staff hygiene and general sanitation [5].
Despite these initial findings, the business underwent inspections and reached a compliance level of 98% [3]. The court found that the FDA continued to keep the license suspended even after this high level of compliance was documented [2].
Gurunanak Dairy and Sweets sought ₹8.74 lakh in compensation for losses incurred during the shutdown [2]. The court determined the suspension was unreasonable and ordered the FDA to pay the ₹5 lakh fine and allow the shop to reopen [1].
The court questioned the policies used by the FDA in this case, suggesting the agency had gone overboard in its enforcement actions [5]. This case comes amid broader regulatory activity in the region, including a separate FDA drive that inspected 86 online food outlets [6].
“The Bombay High Court fined the Maharashtra FDA ₹5 lakh”
This ruling establishes a precedent against administrative overreach by regulatory bodies in Maharashtra. By penalizing the FDA, the court emphasizes that compliance metrics must be the primary driver for restoring business licenses, preventing agencies from using indefinite suspensions as a tool for harassment or excessive punishment.
