Maharashtra FDA crackdown: Why hotel bodies want Modi, Fadnavis to step in

The associations clarified that their objection was not to enforcement itself, but to the manner in which it was being carried out. “The sudden suspension or termination of licences without prior notice or opportunity for corrective action is a matter of grave concern,” said a press note shared with the media late Friday night. “Such enforcement, carried out without consultation and without adherence to procedural fairness, runs counter to the spirit of ‘Ease of Doing Business’ and undermines the legislative intent of the FSS Act, which mandates consultation with representative bodies before regulatory action,” it added.

What the associations are asking for

At the heart of the associations’ complaint is Section 32 of the FSS Act, which requires food business operators to be given a 14-day Improvement Notice before a licence can be suspended or terminated. The associations want this safeguard applied in every case.

They have also flagged the FDA’s compliance order dated June 23, 2026, saying it “contains provisions that are at variance with the FSS Act and its Regulations, and was issued without the prior stakeholder consultation contemplated under the Act.”

Their third concern relates to reputational damage. The associations said that publicly naming establishments and releasing photographs and videos before due process is complete could cause harm that is often irreversible, even in cases where an establishment is later found compliant or takes corrective action.

The associations have accordingly requested the chief minister, the PMO, and the FSSAI “to consider recalling or reviewing the June 23 compliance order to the extent it is inconsistent with the FSS Act, to ensure that the 14-day Improvement Notice process under Section 32 is followed in every instance, and to encourage restraint in public communication of enforcement action until due process is complete.”

The associations reiterated that they have consistently supported zero tolerance towards adulteration and have participated in stakeholder consultations and training programmes with regulators. What they are seeking, they said, is enforcement “exercised within the framework of natural justice already provided for in law — a balance that protects consumers and honest livelihoods in equal measure.”

Why the industry says the stakes are high

The representation also leans heavily on the sector’s economic weight. The associations said the food services industry directly employs more than 85 lakh people and contributes an estimated Rs 33,809 crore annually to the exchequer, making it the third-largest segment of India’s services economy after retail and insurance.

The broader hospitality sector, they said, supports more than 3.2 crore jobs and accounts for nearly 5.8 per cent of the country’s GDP.

Western India, which includes Maharashtra, accounts for nearly a third of the country’s hospitality market. Maharashtra recorded more than 189 million domestic tourist visits and 3.7 million foreign tourist visits in 2024, while the state’s Tourism Policy 2024 projects the creation of more than 30 lakh new jobs and Rs 1 lakh crore in fresh investment in the years ahead.

The associations warned that unpredictable enforcement, coupled with the reputational impact of establishments being publicly named before proceedings are concluded, could unsettle investor and consumer confidence. They said small and mid-sized establishments, along with the daily-wage and migrant workers who depend on them, could bear the brunt of such action.

The representation comes on the same day that the Bombay High Court pulled up the Maharashtra FDA over what it described as “partial” treatment of food business operators at private establishments compared with those operating at government institutions, including Mantralaya, the state secretariat, and Vidhan Bhavan, the state legislature.

“We know you are doing a good and laudable job and someone has stood up to do it. The public is also lauding it, but the medication should not be worse than the disease. You are shooting first and then asking questions. Give them time to improve,” the judge was quoted as saying while questioning the FDA over the issuance of suspension orders instead of Improvement Notices.