Bombay High Court Orders Rs 5 Lakh Compensation For Pune Sweets Shop

The Bombay High Court has directed the Maharashtra Food and Drug Administration (FDA) to pay Rs 5 lakh compensation to a Pune-based sweets shop after its licence remained suspended despite a re-inspection report showing 98 per cent compliance. The court also permitted Gurunanak Dairy and Sweets to reopen, observing that while the regulator’s intention to ensure food safety was “laudable”, its action had gone “overboard”.

A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad criticised the FDA’s approach while hearing a petition filed by the shop. The court described the department’s policy of suspending licences of eateries and hotels in such circumstances as “strange” and “perverse”. The judges ordered the department to pay the compensation to the shop owners within one month, citing the losses caused by the continued closure.

The dispute began after a food safety officer inspected the shop on June 12 following a complaint alleging food poisoning. During the inspection, the officer raised concerns about sanitation and staff hygiene, following which the FDA suspended the establishment’s licence on the same day. The shop subsequently challenged the action before the FDA Commissioner and submitted a report detailing steps taken to comply with the department’s requirements.

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A re-inspection was conducted on July 13, and according to the petition, the shop was found to be 98 per cent compliant with the requirements identified during the earlier inspection. Despite the improved compliance, the licence was not restored. The owners then submitted another representation to the FDA seeking revocation of the suspension, but said no action was taken, prompting them to approach the Bombay High Court.

The shop told the court that the continued closure had resulted in substantial financial losses. According to its petition, Gurunanak Dairy and Sweets had lost approximately Rs 8.74 lakh in revenue since it was shut in June. The court noted that the FDA should have reconsidered the suspension after the re-inspection demonstrated a high level of compliance and said the department had exceeded what was necessary in pursuing the regulatory action.

FDA Commissioner Tukaram Mundhe said he would examine the High Court’s order before commenting on the matter. He said the department would act according to the law and prescribed procedures. With the court allowing Gurunanak Dairy and Sweets to resume operations and ordering Rs 5 lakh compensation, the case has also highlighted the need for food safety enforcement to remain proportionate while ensuring compliance with public health requirements.

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