The Delhi High Court on Tuesday directed the Food Safety and Standards Authority of India (FSSAI) not to proceed with any decision to cancel ITC Limited's food business licence over the labelling of its Aashirvaad MP Chakki Atta as '100% Atta', '100% Madhya Pradesh Wheat' and '0% Maida'. According to Business Standard, Justice Swarana Kanta Sharma passed the interim order after ITC informed the Court that the August 13 improvement notice, requiring compliance within 15 days, would lapse on August 28. The court has made it clear that it had not yet determined whether it possessed territorial jurisdiction to entertain ITC's challenge, directing both sides to submit brief written notes addressing the jurisdictional issue. The case has been listed for further hearing on September 9, providing temporary relief to the FMCG major.
The proceedings arise from an August 10 show cause notice alleging that ITC had violated FSSAI's May 2025 advisory asking food businesses to discontinue the use of '100%' on product labels, packaging and promotional material. As reported by Business Standard, the notice gave ITC 30 days to respond, while a regional authority issued an improvement notice just three days later granting the company only 15 days for compliance. The High Court noted the difference in response periods and that the two notices were issued from different places in Delhi and Kolkata. During the hearing, FSSAI's counsel challenged the maintainability of the proceedings before the Delhi High Court, arguing that the improvement notice had been issued by its Kolkata regional authority and that ITC had an alternative statutory remedy under Section 32 of the Food Safety and Standards Act, 2006. The company disputed this position, maintaining that the matter involved a central licence and relied on Section 10(5) of the Act, which confers on FSSAI's Chief Executive Officer the powers of a Commissioner of Food Safety.
ITC contended that the improvement notice was issued before it had an opportunity to respond to the show-cause notice, rendering the action contrary to the principles of natural justice, as reported by Business Standard. The company has also challenged the validity of the May 2025 advisory, arguing that FSSAI could not impose a binding restriction through an advisory without following the statutory process applicable to framing regulations, including prior publication, Central Government approval and parliamentary scrutiny. ITC has stressed that there was no allegation that Aashirvaad MP Chakki Atta contained maida, included ingredients other than whole wheat flour, or was made from wheat sourced outside Madhya Pradesh. The company has alleged that the notice was non-speaking, mechanical, and without any application of mind, and that the threat of suspension of licence was completely arbitrary and grossly disproportionate.
This development provides significant relief to the FMCG major in the ongoing regulatory dispute with FSSAI. As reported by Business Standard, pending the determination of jurisdictional issues, FSSAI has been restrained from taking any decision to cancel ITC's food business licence. The ruling demonstrates the court's approach to balancing regulatory enforcement with procedural fairness in food safety matters. The case highlights the ongoing regulatory scrutiny of food packaging claims in the Indian market and the importance of legal framework compliance in the FMCG sector. The High Court will determine the jurisdiction issue after considering the parties' written submissions, with the next hearing scheduled for September 9. This forms part of FSSAI's broader crackdown on absolute claims that may create an exaggerated impression of product purity or quality, with the regulator stepping up enforcement against misleading advertising and labelling by food business operators.
