Archive · 17 Sep 2026
Bombay High Court Denies Relief In Thane Paneer Case
A restaurant in Thane was accused of serving a cheese-like product instead of regular paneer.
Officials tested a sample and said it contained foreign fats and was unsafe.
They also said customers were not told that the product was a non-dairy analogue.
The restaurant disagreed with the way its licence was suspended.
It argued that officials should have issued an Improvement Notice first.
The Bombay High Court did not immediately restore the restaurant’s licence.
The court said customers have a right to know what they are eating.
It told the restaurant to use the legal appeal process before returning to the High Court.
The Bombay High Court denied interim relief to Udupi Swaad Restaurant after its food licence was suspended.
The Food and Drugs Administration said a June 11 paneer sample contained foreign fats and was unsafe.
Authorities alleged the restaurant served non-dairy cheese analogue as paneer without informing customers.
The restaurant argued that its licence was suspended without an Improvement Notice or a reasoned order.
The court directed the restaurant to first pursue the statutory appellate remedy under the Food Safety and Standards Act.
- Who
- Udupi Swaad Restaurant, the Food and Drugs Administration, and the Bombay High Court.
- What
- The court refused interim relief after the restaurant’s licence was suspended over alleged use of non-dairy analogue paneer as regular paneer.
- When
- The FDA inspected the restaurant on June 11; the laboratory report was dated June 27; the licence suspension was issued on August 11; and the court hearing occurred on September 16, 2026.
- Where
- Udupi Swaad Restaurant in Wagle Estate, Thane, before the Bombay High Court in Mumbai.
- Why
- The FDA alleged that the restaurant served analogue paneer without informing customers, while the restaurant challenged the suspension procedure and the application of a later notification.
Restaurant’s Position
FDA and Court’s Position
Procedure for licence suspension
Restaurant’s Position
The restaurant argued that its licence was suspended without an Improvement Notice under Section 32 or a reasoned order, leaving even the appellate authority unable to properly assess the action.
FDA and Court’s Position
The government argued that the restaurant had an effective statutory remedy, and the court directed it to pursue that appeal before seeking High Court intervention.
Nature of the paneer product
Restaurant’s Position
The restaurant challenged the FDA’s action and questioned whether a July 31 notification banning analogue paneer could apply retrospectively to a sample collected in June.
FDA and Court’s Position
The FDA said the restaurant had procured non-dairy cheese analogues for paneer dishes, while laboratory testing found foreign fats and classified the sample as unsafe.
Consumer disclosure
Restaurant’s Position
The restaurant sought relief from the licence suspension and highlighted the effect on its 18 employees.
FDA and Court’s Position
The court emphasized that consumers have a right to know what they are being served and questioned whether customers were told they were receiving analogue paneer instead of genuine paneer.
- Restaurant
- Udupi Swaad Restaurant, Thane
- Inspection date
- June 11, 2026
- Laboratory report
- Dated June 27; the sample was reported to contain foreign fats and classified as unsafe
- Licence action
- The FDA suspended the restaurant’s food licence on August 11
- Court direction
- The restaurant must first pursue the statutory appellate remedy
- Employees affected
- The restaurant said 18 employees depended on it for their livelihood
- Relevant law
- Food Safety and Standards Act, 2006