Court Pulls Up FDA Over Continued Licence Suspensions
The Bombay High Court has directed the Maharashtra government and the Food and Drug Administration (FDA) to revoke suspension orders against establishments once the deficiencies that led to the action have been properly rectified.
A division bench comprising acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad said keeping businesses suspended despite compliance could cause serious financial consequences for the establishments, their employees and their supply chains.
Siddharth Agro’s Case
The court’s observations came while hearing a petition filed by Siddharth Agro, a Pune-based manufacturer of dairy products and animal cattle feed.
The FDA had suspended the company’s food licences following a surprise inspection on July 15, citing alleged violations of food safety requirements.
The company subsequently claimed that it had corrected the deficiencies and sought another inspection to establish its compliance.
An FDA re-inspection on July 29, however, found that some deficiencies continued, according to the authorities.
Court Orders Fresh Compliance Verification
The High Court directed the FDA to conduct another inspection on August 31 and prepare a compliance report. The authorities were also asked to provide the company with an auto-generated report showing its compliance marks and percentage.
The court stressed that regulatory action should not continue indefinitely once an establishment has actually corrected the deficiencies identified during an inspection.
It said businesses that have achieved compliance should not be forced to approach the courts simply to obtain revocation of an order that has effectively lost its purpose.
Financial Impact on Businesses
The bench noted that prolonged suspension can prevent an establishment from carrying out its business, resulting in financial losses.
The consequences can extend beyond the company itself, affecting employees and supply chains connected to the business.
The court therefore described such avoidable continuation of suspension as a serious issue and called for a more efficient regulatory mechanism.
Suspensions Should End After Compliance
In a significant direction, the court said that suspension orders should be revoked once the deficiencies have been rectified, provided the establishment is legally compliant.
In Siddharth Agro’s case, the July suspension order was directed to stand automatically revoked once the auto-generated compliance report establishes compliance.
The authorities were also instructed to take the necessary consequential steps, including issuing formal orders, without requiring the business to return to court.
What the Order Means
The ruling does not prevent the FDA from taking action against businesses that violate food-safety requirements. Instead, it emphasizes proportionality and timely closure of regulatory action after violations are genuinely corrected.
The decision could also reduce unnecessary litigation by establishing a clearer process for businesses that successfully address deficiencies identified during inspections.
For Maharashtra’s food regulator, the message is clear: enforcement must protect consumers, but once compliance is established, businesses should not face continuing suspension because of administrative inaction.
Summary: The Bombay High Court has directed Maharashtra’s FDA to revoke business and food-licence suspensions once identified deficiencies have been rectified and compliance is established. The order came in the Siddharth Agro case, with the court warning that prolonged suspensions can cause financial losses to businesses, employees and supply chains and can lead to unnecessary litigation.
