High Court stays cancellation of Aashirvaad Atta license:FSSAI sent a notice for writing 100% Atta, next hearing on September 9

The Delhi High Court today, August 25, has granted an interim stay on the FSSAI’s decision to cancel the license of Aashirvaad Atta. This matter is related to the packaging of ITC’s ‘Aashirvaad MP Chakki Atta’. ITC was using labels like ‘100% Atta’ on its packets and in its promotions. The FSSAI believes that the use of such labels is against the rules of its May 2025 advisory. Question 1. What relief has the Delhi High Court granted to ITC Limited and why? Answer: Justice Swarana Kanta Sharma of the Delhi High Court has directed the FSSAI not to take any decision regarding the cancellation of ITC Limited’s food business license for the time being. ITC had informed the court that the deadline for complying with the improvement notice issued by the FSSAI on August 13 was ending on August 28.
If the company had not received relief from the court, its license could have been at risk. Therefore, the court granted interim protection before August 28. Question 2. Which product and what claims is this entire dispute related to? Answer: This matter is related to the packaging and advertisements of ITC’s flagship product, ‘Aashirvaad MP Chakki Atta’. ITC makes three main claims in its packets and promotions: FSSAI believes that the use of words like ‘100%’ on the label is against the rules of its May 2025 advisory. Question 3. What does the FSSAI advisory say, based on which this action was taken? Answer: FSSAI issued an advisory in May 2025. In it, food companies were asked to stop using the word “100%” on product labels, packaging, and promotional materials. FSSAI argues that such claims can mislead consumers. Question 4. What process did FSSAI follow in issuing a notice to ITC? Answer: FSSAI first issued a ‘show-cause notice’ to ITC on August 10. It sought a response within 30 days. However, just 3 days later, on August 13, FSSAI’s regional authority issued an ‘improvement notice’ and gave ITC 15 days for compliance. Question 5. What arguments did ITC present in court against this action by FSSAI? Answer: ITC, through senior advocate Sandeep Sethi, presented mainly three arguments in court: Question 6. What objections and arguments did FSSAI present during the hearing? Answer: FSSAI questioned the maintainability of the petition. FSSAI stated that: The improvement notice was issued by the Kolkata-based Regional Authority; therefore, the matter does not fall under the jurisdiction of the Delhi High Court. Under Section 32(4) of the Food Safety and Standards Act, 2006 (FSS Act), ITC should have first filed a statutory appeal before the ‘Food Safety Commissioner’. Question 7. What was ITC’s response on the question of jurisdiction? Answer: Citing Section 10(5), ITC argued that this matter pertains to a central license. In cases involving the Central Licensing Authority, the Chief Executive Officer (CEO) of FSSAI exercises the powers of the Food Safety Commissioner. Since the headquarters of the FSSAI CEO is in Delhi, the Delhi High Court has the jurisdiction to hear the matter. Question 8. What will happen next in this case? Answer: The Delhi High Court stated that it will first decide whether it has the territorial jurisdiction to entertain this petition. The court has asked both parties to file brief notes on the question of jurisdiction. The next hearing of the case will be on September 9. Until then, FSSAI cannot take any strict action like cancelling the license. Question 9. Who are the members of the legal team? Answer: ITC Limited was represented in court by Senior Advocate Sandeep Sethi. Along with him, advocates Rohit Sharma, Nikhil Purohit, Jatin Lalwani, Krishna Gambhir, and Shreya Sethi were also present in court. Question 10. What is the ‘100%’ rule on food packets? Answer: According to FSSAI, claims like “100% Pure”, “100% Natural”, or “0% Maida” on packaged food can create confusion among consumers that other competing brands are adulterated. The regulator wants companies to use only certified and accurate technical terms. What is Section 32? Under Section 32 of the Food Safety and Standards Act, 2006, the Food Safety Officer issues an ‘Improvement Notice’ if they feel the need for any improvement. An appeal against this can be filed before the Commissioner of Food Safety.