Swiggy Ltd. shares fell more than 1% in early trade on Monday after the Food Safety and Standards Authority of India (FSSAI) issued nine notices to the company's quick-commerce platform, Instamart, following multiple consumer complaints over food safety.
The stock traded at around Rs 269.1 apiece, down from its previous close of Rs 273.25 on Friday.
The notices relate to complaints alleging the delivery of expired protein supplements and packaged snacks, rotten and contaminated eggs, spoiled ready-to-eat food, damaged packaged products, and an infant food formulation that was allegedly delivered again after the defective item had been returned.
The action by the regulator adds to concerns over food safety compliance at quick-commerce platforms and requires Swiggy to explain its food safety processes, inventory controls and corrective measures.
FSSAI Flags Food Safety, Licensing Issues
FSSAI said it issued nine notices to Instamart after receiving multiple consumer complaints alleging the delivery of expired, spoiled and contaminated food products through the platform.
The regulator also said it found products being sold under categories not covered by the existing FSSAI licence and identified discrepancies related to the FSSAI registration of vendors.
According to the regulator, some complainants alleged that no satisfactory corrective action was taken after the issues were escalated, while others said they received refunds without their food safety concerns being addressed.
FSSAI has asked Swiggy to submit a detailed explanation, including information on its food safety monitoring, inventory management, storage and hygiene practices, quality assurance processes, and corrective and preventive actions (CAPA) taken to prevent similar incidents.
The regulator warned that failure to submit the compliance report within the stipulated timeline could invite action under the Food Safety and Standards Act, 2006.
Share Price Performance
Despite Monday's decline, Swiggy shares have gained nearly 9% over the past week.
Over the past year, however, the stock has fallen nearly 30%, while the Nifty Midcap 50 index has gained more than 9.33% during the same period.
Swiggy's shares have traded in a 52-week range of Rs 235.75 to Rs 474 apiece.
The company's market capitalisation stood at Rs 74,387.69 crore at the close of trade on Friday.
ALSO READ: Expired Food, Contaminated Eggs: FSSAI Issues Nine Notices To Swiggy Instamart Following Complaints
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