Sending a strong signal against administrative overreach and red tape, the Bombay High Court ordered the Maharashtra Food and Drug Administration (FDA) to pay a compensation of ₹5 lakh to a Pune-based sweets retailer. The penalty comes after the state food regulator kept the establishment’s license suspended for weeks despite the business achieving a 98% compliance score in a follow-up inspection.

A division bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad quashed the suspension order, granting Gurunanak Dairy and Sweets, located in Pune’s Wadgaon Sheri, immediate permission to resume business operations.

Court Critical Of Regulator

While acknowledging the regulator’s drive to maintain food standards across the state, the bench noted that keeping compliant businesses shuttered under prolonged administrative appeals amounts to harassment.

“We have observed that your intention is laudable and some department has at least stood up. But you are going overboard. You should have immediately revoked the suspension of the license once you noticed 98 per cent compliance,” observed Acting Chief Justice Ghuge.

The court termed the FDA’s practice of compelling vendors to pursue lengthy appeal processes despite passing re-inspections as a “strange policy” and “plain and simple perversity” that ends up “torturing citizens.”

Timeline of the Case

DateEvent
June 11, 2026A food poisoning complaint was lodged regarding the establishment.
June 12, 2026FDA inspected the premises, cited sanitation lapses, and suspended the food license.
July 9, 2026The owners rectified shortcomings and submitted a formal compliance report.
July 13, 2026Re-inspection took place; the shop scored 35 out of 36 points (98% compliance).
July 15 – Aug 2026License remained unrestored despite pending representation, forcing the owner to move the HC.

Financial Impact and High Court Directives

Advocate Abhijeet Desai, representing the sweet shop, argued before the division bench that the shop had suffered substantial economic damage. Operating on an average daily revenue of roughly ₹25,000, the establishment lost between ₹8.5 lakh and ₹8.74 lakh during the 34 days it remained unnecessarily closed post-compliance.

The bench ordered the Maharashtra FDA to deposit the ₹5 lakh compensation within 30 days to mitigate the financial loss. Addressing the ruling, FDA officials indicated they would review the detailed text of the high court order before determining future steps