Maharashtra FDA ordered to compensate sweet shop after wrongful licence suspension

The order marks a significant rebuke to the state's FDA, led by Tukaram Mundhe, for its handling of the food safety compliance matter. The high court found that the regulator had acted unreasonably in maintaining the suspension of the shop's licence even after the establishment demonstrated substantial adherence to food safety norms.

The case highlights ongoing concerns about regulatory consistency in Maharashtra's food safety enforcement. The shop's achievement of 98 per cent compliance—a benchmark that typically exceeds requirements for licence renewal or restoration—should have prompted swift action by the FDA to lift the suspension, the court observed.

The compensation order is intended to provide relief to the affected business, which faced operational disruptions and financial losses due to the prolonged licence suspension. The ruling is expected to set a precedent for how Maharashtra's FDA handles future compliance disputes, emphasising the importance of proportionate regulatory action.

The incident underscores the need for greater accountability mechanisms within food safety bodies to prevent businesses from facing undue hardship when they demonstrate compliance with prescribed standards. Observers suggest the judgment may prompt the FDA to review its procedures for evaluating and acting upon compliance reports from food establishments.