'You are going overboard': Bombay HC imposes ₹5 lakh cost on FDA for not restoring Pune shop's licence
The Bombay High Court ordered the Maharashtra FDA to pay ₹5 lakh in compensation to a Pune sweets shop for keeping its license suspended despite the shop meeting 98% of compliance requirements. The court criticized the FDA's policy as 'strange' and 'perverse' for going overboard in its enforcement.
Why it matters
This ruling serves as a check on regulatory overreach, emphasizing that administrative actions must be proportionate to compliance efforts.
The Bombay High Court on Monday (August 17, 2026) directed the Maharashtra FDA to pay ₹5 lakh compensation to a Pune-based sweets shop for keeping its licence suspended despite a 98% compliance report and causing losses, noting the regulator's intent is laudable, but it's going "overboard".
A Bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad said the Food and Drug Administration's order suspending licences of eateries and hotels was a "strange policy and perverse".
Meanwhile, FDA Commissioner Tukaram Mundhe told PTI that he would examine the order before responding.
The shop, Gurunanak Dairy and Sweets, had challenged the FDA's action in the High Court and said it had lost ₹8.74 lakh in revenue since its closure in June.
The Bench, while permitting the shop to reopen its business, ordered the department to pay the owners ₹5 lakh compensation within a month.
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