PTC Web Desk:  The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh in compensation to a Pune-based sweets shop after its license remained suspended even after a re-inspection found the establishment to be 98 per cent compliant.

The court also allowed Gurunanak Dairy and Sweets to resume operations, observing that the FDA had taken its action too far despite its stated objective of ensuring food safety.

A division bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad criticised the department's approach while hearing a petition filed by the shop challenging the suspension of its food licence.

The bench said the FDA's intention to maintain food safety was "laudable", but added that the department was "going overboard" by continuing the suspension after the shop had addressed almost all the deficiencies identified during the inspection.

FDA suspended licence after food poisoning complaint

According to the petition, an FDA food safety officer inspected the shop on June 12 after a complaint related to food poisoning. During the inspection, officials raised concerns about sanitation and hygiene practices followed by the staff. The FDA suspended the shop's licence on the same day.

The owners subsequently challenged the decision before the FDA Commissioner and submitted a compliance report detailing the corrective measures taken at the premises.

A second inspection was conducted on July 13. During this inspection, the shop was found to be 98 per cent compliant with the requirements. However, the licence suspension was not revoked.

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The owners later approached the FDA seeking restoration of the licence, but said their representation did not receive any action. With the business remaining shut, the shop claimed that it had suffered losses of around Rs 8.74 lakh in revenue since June.

The owners then moved the Bombay High Court, seeking relief and permission to reopen their business.

During the hearing, the court questioned why the licence had not been restored after the department's own re-inspection showed a high level of compliance.

"We have observed that your intention is laudable and some department has at least stood up. But you are going overboard," the bench observed.

The court further said the licence should have been restored promptly once the FDA found 98 per cent compliance.

The bench also criticised the broader practice of suspending licences of eateries and hotels, describing the policy as "strange" and "perverse."

Court orders compensation and reopening

The High Court allowed Gurunanak Dairy and Sweets to reopen and directed the Maharashtra FDA to pay Rs 5 lakh compensation to the shop's owners within one month. The compensation comes against the backdrop of the shop's claim that its continued closure caused significant financial losses.

FDA Commissioner Tukaram Mundhe said he would examine the court's order before commenting on the matter.

"I have to see the order, then I will respond," Mundhe said, adding that the FDA would operate in accordance with the law and prescribed procedures.