Court stops FSSAI from cancelling ITC's licence over its '100%' claims

New Delhi: The Delhi High Court on Tuesday restrained the Food Safety and Standards Authority of India (FSSAI) from taking any steps to cancel ITC's licence for failing to comply with its order to remove the claim "100% Atta, 100% Madhya Pradesh Wheat, 0% Maida" from the label of its Aashirvaad MP Chakki Atta.

The court asked food regulator to wait until the next date of hearing, which is September 9, while seeking a response from ministry of health and family welfare on company's petition challenging the food regulator's advisory on the use of "100%" claims on food products.

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Justice Swarana Kanta Sharma granted interim relief protection after ITC said the deadline in one of the notices for complying would expire on August 28. While the court said it will first decide its territorial jurisdiction to examine ITC's challenge, it asked the parties to file brief notes on the issue.

The court noted that the FSSAI notices were issued from different places in Delhi and Kolkata. ITC has challenged the FSSAI's May 28, 2025 advisory, which asked food business operators (FBOs) to discontinue the use of the term "100%" on food product labels, packaging and promotional material.

The company has also challenged a show-cause notice issued on August 10 by the assistant director technical of the food safety regulator in Kolkata alleging violation of the advisory, and also an improvement notice issued by central licensing authority in Kolkata on August 13, directing it to remove certain terms from its labels, ads and website and submit a compliance report within 15 days or face suspension of its FSSAI licence.

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The August 10 notice had given ITC 30 days to submit to explain why action should not be taken against it for allegedly failing to comply with the advisory.

Terming FSSAI advisory ex-facie arbitrary and without any rational basis, and that it is liable to be struck down being in violation of Article 14 of the Constitution of India, ITC said that it goes beyond the regulator's powers under the Food Safety and Standards Act, 2006, and bypasses the framework prescribed under the law.