- The Supreme Court set aside Bombay High Court's Rs 5 lakh compensation order to Gurunanak Dairy.
- FDA inspected the dairy after a food-poisoning complaint and found sanitation and hygiene issues.
- The dairy's food license was suspended after Malai Pedha was declared unsafe by FDA tests.
The Supreme Court has set aside a Bombay High Court direction requiring Maharashtra's Food and Drug Administration to pay Rs 5 lakh compensation to Pune-based Gurunanak Dairy & Sweets, ruling that the regulator's action was taken in the interest of public health.
The case dates back to June 12, when FDA officials inspected the establishment following a food-poisoning complaint. The inspection flagged deficiencies involving sanitation, record-keeping, labelling and employee hygiene.
According to NDTV sources, a sample of Malai Pedha collected during the inspection was subsequently declared unsafe, following which the establishment's food licence was suspended under the Food Safety and Standards Act, 2006.
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Gurunanak Dairy & Sweets challenged the suspension before the FDA Commissioner on June 15. It submitted a compliance report on July 9, after which the premises were re-inspected on July 13, four days later. The re-inspection recorded a 98% compliance score.
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The matter then reached the Bombay High Court. On August 17, the court revoked the licence suspension and allowed the establishment to resume its retail business.
It also directed the FDA to pay Rs 5 lakh, citing business losses suffered while the licence remained suspended. The High Court had noted that the shop earned around Rs 25,000 a day and had remained closed for roughly 35 days.
The Maharashtra government challenged the compensation direction before the Supreme Court, arguing that the FDA had acted under statutory powers and without malice or deliberate delay.
The apex court, on October 5, accepted the state's position and quashed the Rs 5 lakh compensation order. The ruling provides relief to the Maharashtra FDA while underscoring the public-health basis cited for the original regulatory action.
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