Zepto’s Dharavi Warehouse Cleared To Reopen After FDA Revokes Suspension

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Zepto has received regulatory clearance to resume operations at its Dharavi dark store in Mumbai after the Maharashtra Food and Drug Administration revoked the suspension of its food business licence. The decision follows a detailed reinspection and submission of a compliance report by the company, marking a significant development in the ongoing scrutiny of food safety practices in India’s quick commerce sector.

Key Developments From The FDA Review
- The suspension was lifted after the Food Safety Commissioner conducted a reinspection and reviewed Zepto’s compliance report
- The report included an internal audit, photographic evidence of corrective actions, and water quality analysis
- The appellate authority accepted Zepto’s appeal on June 13 and formally revoked the suspension order

Background: Why The Licence Was Suspended
- The Dharavi warehouse had been shut since late May after FDA inspections revealed serious food safety violations
- Issues included the sale of expired products, fungal contamination, clogged stagnant water, and improper cold storage temperatures
- Additional lapses noted were wet and filthy floors, food stored directly on the ground, and poor segregation of expired goods

Zepto’s Response And Corrective Measures
- Zepto submitted a detailed compliance report addressing all violations flagged by the FDA
- The company reiterated its commitment to food safety and stated that it has implemented stricter internal audits and hygiene protocols
- The warehouse, operated by Zepto’s licensee Drogheria Sellers, has now resumed operations

Regulatory Context And Industry Implications
- The FDA’s action comes amid heightened scrutiny of backend operations in the quick commerce space
- Similar inspections have been conducted at Blinkit and other players, with notices issued for non-compliance
- The episode adds to Zepto’s operational challenges, including delivery worker unrest and a scale-down of its café vertical

Sources: CNBC-TV18, Moneycontrol, NDTV Profit