FDA Clarifies Suspension of Food Business Licences Is Not Permanent; Establishments Can Restore Operations After Compliance

Mumbai, 1st August 2026: Amid the Maharashtra Food and Drug Administration’s (FDA) ongoing crackdown on food establishments across the state, the department has clarified that the suspension of a food business licence does not amount to its permanent cancellation. Officials said businesses are given an opportunity to rectify deficiencies before any final decision is taken.

The clarification comes after the FDA suspended licences of several hotels, restaurants, bakeries and food businesses during inspections that uncovered violations of food safety and hygiene norms.

According to the FDA, action is initiated under the Food Safety and Standards Act when inspections reveal serious lapses such as poor hygiene, inadequate pest control, unsanitary premises, non-compliance with food safety regulations, failure to maintain mandatory records or other significant deficiencies.

Officials said that before taking stringent action, the law requires authorities to provide the licence holder with an opportunity to correct the shortcomings. Following the suspension of a licence, the establishment is generally granted 15 days to undertake corrective measures, including improving hygiene standards, carrying out pest control, completing civil repairs and implementing other necessary compliance requirements.

Once the corrective measures are completed, the food business operator must submit a compliance report to the FDA and may file an appeal before the FDA Commissioner seeking restoration of the licence. The department then conducts a hearing and carries out a fresh on-site inspection to verify whether the required improvements have been implemented before deciding whether to reinstate the licence or initiate further action.

“After a licence is suspended, the establishment is given time to rectify the deficiencies. Food Safety Officers conduct a fresh inspection after the corrective measures are completed. Based on the inspection report submitted to me, a decision is taken on whether the licence should be restored or whether further action is warranted,” said Tukaram Mundhe, Commissioner, Maharashtra Food and Drug Administration.

Meanwhile, hospitality industry bodies, including the Hotel and Restaurant Association of Western India (HRAWI), the National Restaurant Association of India (NRAI) and the Indian Hotel and Restaurant Association (AHAR), welcomed the FDA’s efforts to strengthen food safety standards across Maharashtra.

However, the associations expressed concern over certain aspects of the recent enforcement drive, stating that businesses should not be publicly named or defamed before investigations are completed. They said food safety inspections should primarily be advisory and corrective in nature, allowing businesses sufficient opportunity to comply with regulatory requirements before stricter legal action is taken.

The industry bodies also argued that publicly releasing preliminary inspection findings before the completion of due legal process could unfairly damage the reputation of long-established businesses, affect customer confidence and impact employment in the hospitality sector.