Delhi HC Seeks Centre, FSSAI Response on Plea Against Ban on Fortune Soya Refined Oil

The Delhi High Court has sought responses from the Centre and the Food Safety and Standards Authority of India (FSSAI) on a petition filed by AWL Agri Business Limited challenging action against its Fortune Soya Health Refined Soyabean Oil.

The dispute relates to FSSAI’s objections to certain declarations and claims printed on the product’s packaging, including “100% Veg” and “Cholesterol Free – For Healthy Lifestyle.”

AWL Agri Business approached the High Court after receiving a show-cause notice from FSSAI over alleged violations of the Food Safety and Standards (Advertising and Claims) Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020.

The authorities had initially questioned whether the Delhi High Court had territorial jurisdiction to entertain the petition. They argued that the company was based in Gujarat and that the product was manufactured and marketed outside Delhi, meaning no part of the cause of action arose within the national capital.

Justice Swarana Kanta Sharma rejected the objection at the preliminary stage, holding that the petition could not be dismissed for lack of territorial jurisdiction.

The court noted that the actions directly challenged by AWL Agri Business were taken by FSSAI in Delhi and formed the basis of the relief sought by the company.

The High Court also observed that the relevant FSSAI authorities were located within its territorial jurisdiction, making them subject to the court’s writ jurisdiction.

The matter stems from a July 17 show-cause notice issued by FSSAI. The notice alleged regulatory violations and gave the company seven days to explain why action should not be initiated under the Food Safety and Standards Act.

On the same day, FSSAI reportedly wrote to food safety commissioners across all states and Union territories, directing them to ensure that products classified as “non-compliant products” were not manufactured, distributed, marketed or sold.

AWL Agri Business contended that the communication effectively placed its Fortune Soya product in the non-compliant category and put the company’s distributors, stockists, wholesalers and retailers across the country at risk of enforcement action.

The company further told the court that, during August, some distributors informed it that food safety officials had visited their premises and instructed them to stop selling the product.

According to the petition, the developments also led retailers to stop placing fresh orders and request the return of stocks already supplied.

The Delhi High Court has given the Centre and FSSAI four weeks to file their responses and has scheduled the matter for further hearing on November 5.

The proceedings will determine the next stage of the dispute over FSSAI’s regulatory action against the Fortune Soya refined oil product.