Bombay High Court Directs Maharashtra FDA to Revoke Licence Suspension After Compliance

In a significant ruling that curbs administrative inertia, the Bombay High Court has directed the Maharashtra Food and Drugs Administration (FDA) to automatically revoke licence suspensions once an establishment rectifies identified deficiencies. The division bench, comprising Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad, warned against forcing businesses to approach court for relief after compliance, terming such litigation "wholly avoidable".

The order came while hearing a petition filed by Siddharth Agro, a milk procurement and storage unit based in Ambegaon, Pune district. The FDA had suspended its licence on July 15, 2026, citing non-compliance with food safety regulations. After the petitioner claimed to have rectified the deficiencies, a re-inspection on July 29 found some issues still unresolved. Siddharth Agro then sought a fresh inspection and court intervention.

Arguments on Both Sides

Additional Government Pleader Priyabhushan Kakade opposed the petition, arguing that the re-inspection confirmed continuing deficiencies, warranting the suspension. Petitioner's counsel Manoj Badgujar countered that all pointed-out deficiencies had since been addressed, and a fresh inspection would demonstrate full compliance.

Court's Observations on Bureaucratic Inaction

The High Court noted a troubling pattern in multiple matters: even after establishments fully comply, the FDA fails to revoke suspension or cancellation orders. "We have noticed in several matters listed before us, that even after an establishment has duly complied with the deficiencies pointed out by the Respondents, the suspension or cancellation order is not revoked," the judges observed.

Emphasising the harsh consequences, the court added: "The result of such inaction is extremely serious, as the establishment is prevented from carrying on its business. This causes financial loss to the establishment and has a cascading effect on its employees and supply chains." The bench further stated there could be "no justification for requiring an establishment to approach this Court merely to secure revocation of an order which has ceased to have any efficacy."

Referring to a previous case— Writ Petition No. 9905 of 2026 ( M/s. Gurunanak Dairy & Sweets vs. The Union of India ) —where compensatory costs of ₹5 lakh were imposed, the court made clear that "an establishment which has cured the deficiencies cannot be penalised further due to the inaction of the Respondents."

Landmark Direction on Automatic Revocation

To prevent recurrence and ensure the regulatory mechanism operates fairly, the court directed that in all such cases, once the FDA is satisfied through an auto-generated report that deficiencies have been rectified, the authority "shall forthwith revoke the suspension or cancellation order." The same principle was applied to Siddharth Agro 's case: the impugned suspension order shall stand automatically revoked upon issuance of the compliance report , without requiring the petitioner to approach court again.

Fresh Inspection Ordered

The court directed respondent Nos. 3 and 4 to conduct a fresh inspection of Siddharth Agro's establishment on August 31, 2026, between 2:00 p.m. and 5:00 p.m. and prepare an auto-generated compliance report. The petition is listed for further directions on September 3, 2026.

The ruling effectively relieves businesses from the burden of additional litigation and sets a clear expectation that regulatory authorities must act promptly once compliance is demonstrated.