Supreme Court Overturns ₹5 Lakh Compensation Order to Pune Dairy

On October 5, 2026, the Supreme Court of India annulled a directive from the Bombay High Court that required the Maharashtra Food and Drug Administration (FDA) to pay ₹5 lakh in compensation to a Pune dairy and sweets establishment. This ruling came after the dairy's food license was suspended due to a food poisoning complaint, which led to an inspection by FDA officials.

The controversy began on June 12, when food safety officers inspected the dairy following reports of food poisoning. During the inspection, officials identified several hygiene-related deficiencies, including poor record maintenance and inadequate employee hygiene. Consequently, the FDA suspended the establishment's food license under the Food Safety and Standards Act of 2006, declaring a sample of their 'Malai Pedha' as unsafe.

Following the suspension, the dairy's proprietor filed an appeal with the FDA Commissioner on June 15. The establishment later submitted a compliance report on July 9, which prompted a reinspection by the FDA on July 13. Subsequently, the Bombay High Court intervened, revoking the suspension on August 17 and ordering the FDA to compensate the dairy for business losses incurred during the suspension.

The Maharashtra government contested the High Court's compensation order, arguing that the FDA acted responsibly and without malice throughout the process. They highlighted that the dairy's appeal was still pending and that the FDA's actions were in accordance with public health interests. The state maintained that any delays were not intentional and should not warrant financial penalties against the government.

In light of these arguments, the Supreme Court accepted the state's position and quashed the Bombay High Court's compensation order. This ruling underscores the court's support for regulatory actions taken by the FDA in the interest of public health, emphasizing the importance of compliance with food safety standards.