Bombay High Court Orders Rs 5 Lakh Compensation to Pune Sweet Shop Over Delayed License Restoration

The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh to a Pune-based sweets and dairy shop after questioning the continued suspension of its food licence despite the establishment being found 98% compliant during a subsequent inspection. The case concerns Gurunanak Dairy and Sweets, whose licence was suspended by food safety authorities following an inspection conducted on June 12 after a complaint involving suspected food poisoning.

During the inspection, officials raised concerns about sanitation and hygiene practices at the establishment and ordered the suspension of its food licence. The shop subsequently challenged the action and informed authorities that it had taken corrective measures to address the deficiencies. A follow-up inspection was carried out on July 13. According to the proceedings before the High Court, the establishment was found to be 98% compliant with the required standards. However, its licence was not restored.

The business approached the authorities again seeking permission to resume operations but, after receiving no relief, moved the Bombay High Court. The shop told the court that the continued closure had caused an estimated ₹8.74 lakh loss in revenue. A division bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad criticised the FDA's approach, questioning why the licence continued to remain suspended after the subsequent inspection showed a high level of compliance. The court observed that while ensuring food safety is a legitimate regulatory responsibility, the authorities appeared to have gone beyond what was necessary by continuing the suspension.

The High Court ordered the Maharashtra FDA to pay ₹5 lakh in compensation within one month and permitted the Pune establishment to resume its operations. Maharashtra FDA Commissioner Tukaram Mundhe said the department would examine the court's order. He maintained that the FDA functions in accordance with the applicable law and prescribed procedures.

The case highlights the need for food-safety authorities to balance strict enforcement with proportionate regulatory action. While inspections and temporary closures can be necessary when public health concerns arise, prolonged restrictions after corrective measures have been taken can have a significant impact on small businesses. The ruling also underscores the importance of timely decisions by regulators once establishments demonstrate compliance with food-safety requirements.