IndiaRetailBiz

“Following the FDA order against suspending Subhiksha’s warehouse license for 20 days, Subhiksha went ahead and appealed in the Bombay Hi gh Court against the order and has managed to get a stay order from the Bombay High Court.” — R Subramanian, Founder and Managing Director, Subhiksha.

Subhiksha, the Chennai-based, country’s largest food, grocery, and pharma, retail chain, got a reprieve from the Honourable Bombay High Court, after a special sitting of the Court on August 15. The Court has directed Maharashtra Food and Drug Administration (FDA) to stay execution its order against the company until Friday the 22nd August, 2008.

It may be recalled that Dhanraj Khamatkar, Commissioner, MFDA, in respect of an appeal made by the company, had decided to double the quantum of the punishment earlier meted to the company by the regulatory agency.  FDA had not only suspended licenses of two of the company’s warehouses in Bhiwandi– a Mumbai suburb– for a period of 20 days beginning 20th August, 2008, but had also suspended licenses of three of its vendors who were offering packaging services to the company.

Subhiksha officials, who have accused competitors and vested interests for FDA’s adverse action, had termed FDA’s recent action to be “absolutely absurd and wrong.”