Delhi High Court Stops FSSAI From Cancelling ITC Licence Over Atta Claims

The Delhi High Court on Tuesday restrained the Food Safety and Standards Authority of India (FSSAI) from taking any decision to cancel ITC Limited's food licence over its use of '100%' claims…

The Delhi High Court on Tuesday restrained the Food Safety and Standards Authority of India (FSSAI) from taking any decision to cancel ITC Limited's food licence over its use of '100%' claims on Aashirvaad MP Chakki Atta. Justice Swarana Kanta Sharma granted interim protection to ITC while hearing its plea against FSSAI notices that asked the company to remove claims such as '100% Atta', '100% Madhya Pradesh Wheat' and '0% Maida' from product labels and advertisements.

The Court noted it was yet to decide whether ITC's case could be heard by the Delhi High Court, after FSSAI questioned the jurisdiction, saying the latest notice was issued by its Kolkata authority. The Court directed that no decision on licence cancellation be taken until the next hearing. The matter will be heard on September 9.

The dispute stems from a May 2025 FSSAI advisory asking food companies to stop using '100%' claims. On August 10, FSSAI issued a show-cause notice to ITC. Three days later, a Kolkata authority issued an improvement notice, giving ITC 15 days to comply or face licence suspension. ITC argued the improvement notice came before it could respond to the show-cause notice, and challenged the advisory's validity.

Indian Opinion Analysis

This case tests the legal standing of FSSAI advisories, which are issued as executive directions rather than formal regulations under the Food Safety and Standards Act, 2006. ITC's argument that such restrictions cannot be imposed through an advisory alone could set a precedent for how the food regulator enforces labelling standards. The core dispute is whether '100%' claims mislead consumers or are factual statements about ingredients. If the court rules against FSSAI, it may force the regulator to amend its rules through the formal notification process, which requires public consultation. The next hearing on September 9 will determine whether the Delhi High Court retains jurisdiction or transfers the case to Kolkata.

With Aashirvaad being a leading atta brand by market share, the outcome could affect labelling practices across the packaged food industry.


Source: ndtv.com

This brief was synthesised by AI from the source linked above.

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