The Bombay High Court on Monday, August 17, 2026, has set aside the suspension of the food licence of a Pune-based sweet shop after a fresh inspection found it 98% compliant with hygiene requirements. The Court also directed the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh as compensation for the continued closure.
A Division Bench comprising Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad heard the petition filed by Gurunanak Dairy and Sweets.
Background of the Case
The FDA had suspended the shop’s licence on June 12 following concerns relating to food safety and hygiene. The shop challenged the action and subsequently submitted a compliance report.
A fresh inspection was conducted after the shop addressed the concerns. It scored 35 out of 36 marks, amounting to 98% compliance. Despite the favourable inspection report, the licence remained suspended because the shop’s appeal before the FDA Commissioner was still pending.
The petitioner told the Court that the 34-day closure had caused substantial financial loss, claiming revenue losses of around ₹8.5 lakh.
Court's Observation
The Bench questioned why the licence continued to remain suspended after the authority itself had found the establishment substantially compliant.
“This is harassment. Who will compensate for the loss?” the Bench observed while questioning the FDA’s approach.
The judges also criticised the policy requiring the shop to await the outcome of the appeal despite the subsequent inspection recording 98% compliance. The Court described the approach as “absolute strange policies” and observed that the FDA’s intention to enforce food safety was laudable, but it had “gone overboard”.
Decision
The Bombay High Court quashed the licence suspension, allowing Gurunanak Dairy and Sweets to resume its operations.
The Court further directed the Maharashtra FDA to pay ₹5 lakh compensation to the petitioner within 30 days.
