Bombay HC makes food safety body pay Rs 5 lakh for not restoring Pune shop’s licence despite 98% compliance
Source Entity
Omkar Gokhale
The Bombay High Court has ordered the Maharashtra FDA to pay Rs 5 lakh in compensation to a Pune sweets shop. The court criticized the agency for maintaining a license suspension despite the business achieving 98% compliance.
Bombay High Court Penalizes Food Safety Authority for Regulatory Overreach
In a significant ruling, the Bombay High Court has reprimanded the Maharashtra Food and Drug Administration (FDA) for its handling of a license suspension case involving a Pune-based business, Gurunanak Dairy and Sweets. The court’s decision to impose a Rs 5 lakh penalty on the regulatory body underscores a growing judicial scrutiny of administrative actions that threaten the livelihoods of small business owners.
The Context of Regulatory Non-Compliance
The conflict originated when the food safety body suspended the license of Gurunanak Dairy and Sweets. Following the suspension, the establishment underwent a re-inspection process where it demonstrated a 98 percent compliance rate with safety standards. Despite this near-perfect rectification of issues, the regulatory body failed to restore the license, effectively keeping the establishment shuttered and preventing it from operating.
Judicial Criticism of Administrative Perversity
The Bombay High Court did not mince words in its assessment of the FDA's conduct, describing the refusal to restore the license as a “strange policy and perversity.” By maintaining the suspension despite clear evidence of compliance, the authority acted in a manner that the court deemed unreasonable. This judicial intervention serves as a stern reminder that regulatory bodies must act with proportionality and fairness, rather than utilizing suspension as a default or punitive measure.
Economic Impact on Small Businesses
The financial toll on the petitioner was substantial. According to the court documents, the forced closure resulted in a loss of Rs 8.74 lakh in revenue for the shop. This case highlights the precarious nature of small-scale food businesses that rely on day-to-day operations. The court's order for compensation acts as a form of restitution for the economic harm caused by the FDA's procedural delays.
Implications for Regulatory Future Trends
This ruling establishes a critical precedent for administrative accountability in India. By mandating a payment of Rs 5 lakh within 30 days, the court has set a standard that negligence or bureaucratic inertia in license management will result in financial liability for the state. Moving forward, such rulings are expected to force regulatory agencies to streamline their re-inspection protocols and ensure that compliant businesses are not unfairly penalized after meeting safety requirements.
Conclusion
The Bombay High Court’s decision to permit Gurunanak Dairy and Sweets to resume operations while penalizing the state authority marks a victory for procedural justice. It reinforces the principle that regulatory powers must be exercised to ensure public safety, not to obstruct commerce through arbitrary or stagnant administrative processes. The case serves as a cautionary tale for government agencies regarding the necessity of timely responsiveness.