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What FSSAI Eatery License Suspensions Mean for Businesses

What FSSAI Eatery License Suspensions Mean for Businesses
What happens when FSSAI suspends an eatery’s license? Rules and penalties explained · livemint.com

FSSAI can temporarily stop a restaurant from operating when it breaks important food-safety rules.

This may happen because the kitchen is very unhygienic or because the restaurant ignored an earlier warning.

The restaurant must stop making and selling food while the suspension is active.

Officials may also take away or destroy food that they believe is unsafe.

The business must fix the problems and ask officials to inspect it again.

If the inspection shows that the problems are solved, the suspension can be removed.

If the problems are not fixed, the license may be cancelled.

A business whose license is cancelled must wait at least three months before applying for a new one.

Key facts

Governing framework
Food Safety and Standards Act, 2006, and Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011.
Immediate effect
The operator must cease all food manufacturing, cooking, and selling activities.
Enforcement powers
Under Section 38, Food Safety Officers may seize, keep in safe custody, or destroy unsafe food articles.
Reinstatement process
The business must correct deficiencies, submit a compliance report, request a fresh inspection, and demonstrate compliance.
Possible final action
Failure to rectify issues within the allotted time can result in permanent license cancellation after a show-cause notice.
Cooling-off period
A business with a cancelled license must wait at least three months from cancellation before applying for a new license.
Selected penalties
Penalties cited include up to ₹5 lakh for sub-standard food, ₹3 lakh for misbranding, ₹1 lakh for extraneous matter, and ₹10 lakh for misleading advertisements.

Quotes

Rishi Agrawal

Co-founder and CEO of TeamLease RegTech

“More serious offences can attract both fines and imprisonment. Section 59, for instance, provides for imprisonment and fines in cases involving unsafe food, with the punishment increasing where the violation results in injury or death.”
livemint.com
“For an eatery, the impact is immediate; operations can stop, revenue is affected, employees and suppliers are disrupted, and customer trust can take a hit.”
livemint.com

Sources

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