Zepto In The Dock As Maharashtra FDA Cracks Down On Its Mumbai Operations
Zepto says it has initiated an internal review into the Dharavi matter and that it's working closely with the concerned authorities to ensure full and swift compliance.
Maharashtra’s food inspection authority has cancelled the licence of Zepto’s facility in Dharavi as part of a larger crackdown on the quick commerce company’s operations in Mumbai.
The Food and Drug Administration after inspection at Dharavi revealed non-compliance with food standards. The authority a few days ago had also inspected Zepto’s facilities in Bhiwandi, Bandra West and Borivali, and found violations, according to a department official.
The inspection of the Dharavi facility revealed serious non-compliance with the Food Safety and Standards Act, 2006 and the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, according to FDA.
For the Bhiwandi and Bandra East facilities as well notices were sent, and at the Borivali location, the food business license was suspended. Zepto later implemented corrective actions and got the go ahead to restart operations from the appellate authority, the above mentioned official said.
In Dharavi, the agency noted that fungal growth in certain food articles was observed, storage of products near clogged/stagnant water, indicating poor hygiene was seen and cold storage temperatures were not maintained as per regulatory standards. Wet and filthy floors, with food items stored in a disorganized and unsanitary manner, including directly on the floor, were seen and even expired food products were not clearly separated from non-expired stock.
The inspection was conducted based on information received from Minister of State for FDA Yogesh Kadam. The regulatory body said that the findings constitute a failure to comply with the conditions of the license. Further, Anupamaa Balasaheb Patil, Assistant Commissioner (Food), has issued an order of immediate suspension under Section 32(3) of the Food Safety and Standards Act, 2006 and Regulation 2.1.8(4) of the Licensing and Registration Regulations, 2011.
The suspension remains effective until the establishment achieves full compliance and receives approval from the licensing authority.
“At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable," a spokesperson for the company told NDTV Profit over email. "We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance.”
Past Troubles
The much touted quick commerce player, in the recent past, has been receiving flak for multiple reasons. While the company races to improve its financials, taking on the heavy investments done, the customers have not spared the fury. Many users have taken to social media platforms to express their discontent with Zepto allegedly using dark patterns, and hiking charges.
Zepto’s CEO Aadit Palicha was also in the limelight recently for alleging that a chief financial officer(CFO) of a rival firm is running a smear campaign by making allegations against the company, giving out false numbers on Zepto, and paying bots to spread negative narratives.
Recently, Zepto’s Rural Mobilization Program came under fire, after the labour union- The Rajdhani App Workers Union alleged that the recruitment agencies affiliated with the company are unfairly cutting earnings of delivery agents recruited from small towns, and are kept in dismal living conditions.
