Delhi HC Stops FSSAI From Cancelling ITC Licence Over '100%' Claims On Aashirvaad Atta

(MENAFN- Live Mint) The Delhi High Court has granted interim relief to ITC, directing the Food Safety and Standards Authority of India (FSSAI) not to cancel the company's licence for the time being over its use of "100 per cent" claims on Aashirvaad M.P Chakki Atta.

Justice Swarana Kanta Sharma passed the order on Tuesday while hearing ITC's challenge to FSSA advisories and notices that required the company to stop using "100%" in connection with the product or face action against its food licence.

The court said the question of whether the Delhi High Court has jurisdiction to hear the matter still needs to be determined. Since the courts will remain closed, it granted protection to ITC until the next hearing.

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"Since the issue regarding jurisdiction is to be decided and the courts will be closed, till the next date of hearing, no decision regarding cancellation of the license will be taken," Justice Sharma said.

The case has been listed for September 9.

ITC challenges FSSAI action over Aashirvaad atta claims

The dispute centres on claims made on the packaging and advertising of 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.

The regulator subsequently directed ITC to remove references to "100% Atta & 100% Madhya Pradesh Wheat", as well as "0% Maida", from the product's labels and advertisements.

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The company was given 15 days to submit a compliance report, failing which its FSSAI licence could be suspended.

ITC has challenged the regulatory action, arguing that the improvement notice came before the expiry of the 30-day period it had been given to respond to the allegations.

FSSAI's '100%' food labelling advisory

The dispute follows an FSSAI advisory issued in May 202 asking food business operators to discontinue the use of "100%" on food product labels, packaging and promotional material.

The regulator later issued a fresh notice to ITC on August 10, asking the company to explain within 30 days why action should not be taken for allegedly failing to comply with the advisory.

Three days later, the Central Licensing Authority in Kolkata issued an improvement notice to ITC concerning the Aashirvaad product.

The notice directed the company "to remove the claim/term of 100% Atta & 100% Madhya Pradesh Wheat" along with "0% Maida" from the product's labels and advertisements.

FSSAI questions Delhi High Court jurisdiction

During Tuesday's hearing, FSSAI's counsel challenged the maintainability of ITC's petition before the Delhi High Court, arguing that the latest improvement notice had been issued in Kolkata.

The jurisdiction issue remains to be decided by the court.

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Justice Sharma also said she would issue an order on Monday, August 31, concerning the maintainability of a separate petition filed by AWL Agri Business Limited against FSSAI.

Fortune oil claims also face FSSAI scrutiny

AWL Agri Business, which sells Fortune-branded products, has also received FSSAI notices concerning claims made 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 court's decision in the separate AWL matter could provide further clarity on the legal challenges surrounding FSSAI's action against such product claims.

ITC calls licence threat arbitrary

In its petition, ITC has argued that the improvement notice effectively amounted to a final prohibition despite the company still having time to respond to the earlier FSSAI notice.

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The company described the notice as non-speaking and mechanical, alleging that it had been issued without proper application of mind.

ITC also argued that the threat of suspending its FSSAI licence was arbitrary and disproportionate.

For now, the Delhi High Court's interim direction means FSSAI cannot cancel ITC's licence while the jurisdictional issue is considered, with the next hearing scheduled for September 9.

(With PTI inputs)

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