New Delhi: Providing interim relief to ITC, the Delhi High Court has directed the Food Safety and Standards Authority of India (FSSAI) not to cancel the company’s food licence for now over its use of ‘100 per cent’ claims on Aashirvaad M.P Chakki Atta.
The order was passed today when the court heard ITC’s challenge to regulatory notices concerning the product.
Justice Swarana Kanta Sharma said the court would first have to determine whether it had jurisdiction to hear ITC’s petition.
She said no decision on cancellation of the company’s licence would be taken until the next hearing, as the courts would remain closed in the interim.
The dispute concerns claims used on the packaging and in advertising for Aashirvaad M.P Chakki Atta.
FSSAI had objected to claims including ‘100% Atta & 100% Madhya Pradesh Wheat’ on the product label and ‘Made from 1005 M.P Wheat only’ in promotional material.
It subsequently directed ITC to remove references to ‘100 per cent Atta & 100 per cent Madhya Pradesh Wheat’ and ‘0% Maida’ from the product’s labels and advertisements.
ITC was given 15 days to submit a compliance report, with the company facing possible action against its FSSAI licence in case of non-compliance.
ITC has challenged the regulatory action, arguing that the improvement notice was issued before the expiry of the 30-day period available to it to respond to the allegations.
During Tuesday’s hearing, FSSAI questioned the maintainability of ITC’s petition before the Delhi High Court, pointing out that the latest improvement notice had been issued in Kolkata.
The regulator issued a fresh notice to ITC on 10 August, seeking an explanation within 30 days on why action should not be taken for allegedly failing to comply with its advisory. On 13 August, the Central Licensing Authority in Kolkata issued an improvement notice concerning Aashirvaad M.P Chakki Atta.
The notice directed ITC “to remove the claim/term of 100% Atta & 100% Madhya Pradesh Wheat” along with “0% Maida” from the product’s labels and advertisements.
The court is yet to rule on the jurisdiction issue. Justice Sharma is also scheduled to pass an order on 31 August on the maintainability of a separate petition filed by AWL Agri Business Limited against FSSAI.
AWL Agri Business, which sells Fortune-branded products, has also received FSSAI notices concerning claims on Fortune Soya Health Refined Soyabean Oil. The notices relate to label declarations and marketing claims including ‘100% Veg’ and ‘Cholesterol Free – For Healthy Lifestyle’.
The proceedings in the AWL matter could provide further clarity on the legal challenges surrounding FSSAI’s action against product claims.
ITC has argued that the improvement notice effectively imposed a final restriction even though it still had time to respond to the earlier FSSAI notice. The company has described the notice as non-speaking and mechanical, alleging that it was issued without proper application of mind. It has also termed the proposed suspension of its FSSAI licence arbitrary and disproportionate.
The court’s interim protection will remain in place while it considers the jurisdictional question. The next hearing in the ITC matter is scheduled for 9 September. (BVI)
