Zepto’s Food Business Licence Suspended in Dharavi Over Hygiene Violations

Image Source : NDTV Profit

  The Maharashtra Food and Drug Administration has suspended the food business licence of Kiranakart Technologies, the parent company of quick-commerce platform Zepto, following a surprise inspection at its Dharavi facility. The regulatory action comes after officials uncovered multiple breaches of food safety standards, raising concerns about hygiene and consumer health.

Key Findings from the FDA Inspection
- Inspectors discovered visible fungal growth on certain food items, posing a serious health risk.
- Food products were stored near clogged or stagnant water, violating hygiene regulations.
- Cold storage temperatures were not maintained as per regulatory guidelines, compromising food safety.
- Floors were wet and filthy, with food items and raw materials stored directly on the ground in an unsanitary manner.
- Expired food products were not adequately segregated from non-expired stock, increasing the risk of unsafe food reaching consumers.

Regulatory Action and Compliance Requirements
- The suspension order was issued under Section 32 (3) of the Food Safety and Standards Act, 2006, and Regulation 2.1.8 (4) of the Licensing and Registration Regulations, 2011.
- Zepto’s food business operations at the Dharavi facility will remain suspended until all deficiencies are rectified and the site is cleared by the regulatory body.
- The Maharashtra FDA has reiterated its commitment to enforcing food safety norms and ensuring compliance among food businesses.

Industry Impact and Consumer Concerns
- The suspension raises questions about food safety practices in the quick-commerce sector, where rapid delivery often takes precedence over stringent hygiene measures.
- Consumers are advised to remain vigilant about food quality and report any concerns to regulatory authorities.
- The incident underscores the importance of regular inspections and strict enforcement of food safety regulations.

Future Outlook and Company Response
- As of now, Zepto has not issued an official statement in response to the FDA’s action.
- The company is expected to take corrective measures to regain its licence and restore consumer confidence.
- Industry experts anticipate increased scrutiny of food storage and handling practices across the quick-commerce sector.

Source: Business Standard, Financial Express, CNBC TV18, NDTV Profit.