The legal dispute originated on June 12, when the Maharashtra FDA suspended the dairy and sweet shop’s operating license following a consumer food poisoning complaint and subsequent inspection that noted minor sanitation and facility maintenance deficiencies. Following the suspension, the shop operator implemented corrective measures, approached FDA Commissioner Tukaram Mundhe, and submitted an official rectification report on July 9. A formal FDA reinspection conducted on July 13 awarded the establishment 35 out of 36 audit points (a 98 percent compliance score), yet local regulatory officials refused to revoke the suspension, compelling the retailer to petition the High Court.

During court proceedings, counsel representing the dairy retailer detailed that the prolonged 34-day closure resulted in severe commercial losses totaling approximately ₹8.74 lakh, alongside irreversible brand damage. In defense, the Maharashtra FDA argued that the suspension could not be administratively rescinded at the field level while the proprietor’s statutory appeal remained technically pending before the FDA Commissioner. The High Court rejected this procedural defense, characterizing the enforcement bureaucracy’s refusal to reinstate a compliant operator as administrative harassment that exceeded statutory intent.

The division bench acknowledged that state-level crackdowns on food adulteration and hygiene lapses are driven by laudable public health objectives, but emphasized that enforcement agencies must not “go overboard” by weaponizing procedural technicalities against businesses that successfully rectify violations. The court emphasized that the Food Safety and Standards framework is designed to encourage systemic compliance rather than enforce punitive, indefinite closures on compliant enterprises. Consequently, the bench quashed the suspension order, permitted Gurunanak Dairy & Sweets to resume operations immediately, and gave the FDA 30 days to deposit the ₹5 lakh compensation.