The Bombay High Court on Monday directed the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh compensation to a Pune-based sweets shop after the department kept its licence suspended despite a re-inspection report finding the establishment 98 per cent compliant.

A Bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad permitted Gurunanak Dairy and Sweets to reopen and criticised the FDA for continuing the suspension despite substantial compliance with food safety requirements.

The Court observed that while the FDA's objective of ensuring food safety was “laudable”, the department had gone “overboard” in the present case. It termed the policy of suspending licences of eateries and hotels in such circumstances as “strange” and “perverse”.

The shop had approached the High Court challenging the FDA's decision, claiming that it had suffered losses of ₹8.74 lakh in revenue since its closure in June.

According to the petition, an FDA food safety officer inspected the premises on June 12 following a complaint of food poisoning and raised concerns regarding sanitation and staff hygiene. The department subsequently suspended the shop's licence on the same day.

The establishment challenged the suspension before the FDA Commissioner and submitted a compliance report. A subsequent re-inspection conducted on July 13 found the shop to be 98 per cent compliant. However, despite the findings, the licence was not restored.

The owners thereafter submitted a representation seeking revocation of the suspension but received no action from the department, prompting them to approach the High Court.

During the hearing, the Bench questioned why the FDA had not revoked the suspension once the re-inspection report established 98 per cent compliance.

The Court directed the department to pay ₹5 lakh compensation to the shop owners within one month and allowed the establishment to resume operations.

FDA Commissioner Tukaram Mundhe said he would examine the High 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 act in accordance with the law and prescribed procedures.

The case highlights the need for regulatory authorities to balance stringent food safety enforcement with timely review of corrective measures taken by establishments.