IndiaRetailBiz

 ”The verdict is absolutely absurd and wrong. They have no basis to pass such an order because to an appeal on an existing verdict, they can only retain the original verdict or modify it in appellant’s favour. We will move the high court against this suspension.”– R Subramaniam, Managing Director, Subhiksha Trading.

Earlier claims of Subhiksha officials over hygiene issues notwithstanding, the Food and Drug Administration (FDA) of Maharashtra has doubled the period of suspension of two of its warehouses in Mumbai. The period of suspension has been increased from from 10 to 20 days.

The original cause of action relates to a customer’s complaint about a year ago to the effect that the retailer’s Juhu store was selling a food article whose expiry date was already over.

Subhiksha has called this decision a “mockery of law”, stating the orders have been passed on considerations other than law. The latest action of the FDA, according a company official should, however, not affect the company’s retail operations in Mumbai.

Charging that the FDA action was handiwork of ‘vested interests of business rivals’ Subhiksha had appealed the Commissioner of the state FDA to quash the same. The FDA Commissioner Dhanraj Khamatkar, however, ruled that the suspension period be doubled and licences of three packaging firms, namely, Intuitive Software, Analog Financial Services and Quadrangle Trading Services be cancelled”

Subhiksha’s Managing Director R Subramanian said, “It is somebody’s pressure that has led to the current situation.”

“We are in consultation with our lawyers for filing an appeal in the Court,” added Subramania.

It may be recalled that warehouses of the Chennai-based no-frills, deep discount food, grocery, and pharma chain, were under scanner of the FDA. The warehouses where the regulatory agency has found two of the ten samples as ‘adulterated’ are located in Bhiwandi, a northern suburb on Western line of Mumbai.

It may be mentioned here that there was a big uproar in the Maharashtra Assembly a few days ago. Baba Siddiqui, the state minister of food and drugs, had then promised to complete FDA’s enquiry against the retailer within 10 days.

Baba Siddiqui has today described the FDA action as warranted, saying those violating norms should be penalised.