HC nullifies penalty against Tata Chemicals and others for alleged substandard iodized salt

The Nagpur bench of the Bombay High Court has overturned a penalty order issued by the Food Safety Appellate Tribunal in Maharashtra’s Buldhana back in 2016. The tribunal had penalized Tata Chemicals Limited and several other companies for purportedly producing and selling substandard iodized salt. Justice Anil L. Pansare, in his ruling, directed the Food Safety and Standards Authority of India (FSSAI) to ensure procedural compliance and transparency in future cases.

Tata Chemicals Limited and other appellants had challenged the 2016 penalty order, arguing against the penalties imposed under sections 26(2)(ii) and 27(1) of the Food Safety and Standards Act, 2006. The high court’s judgement highlighted significant discrepancies and procedural lapses in the case. It pointed out that while the initial food analyst’s report labelled the product as misbranded, the appellants contested this, and the matter was referred to the Referral Food Laboratory (RFL) for further analysis.

However, the RFL’s report, while concluding the product was substandard, lacked sufficient reasoning or justification for deviating from the initial report, raising questions about the validity of its findings. The court also noted that the RFL exceeded the mandated time frame for analysis, potentially compromising the integrity of the sample and its classification.

Justice Pansare emphasized the importance of adhering to procedural guidelines, particularly in matters of food safety, where public health and consumer trust are paramount. He stated, “The penalty cannot be imposed on the basis of such a report.”

In light of these critical observations, the high court annulled the previous orders, clearing all appellants of wrongdoing. Furthermore, it instructed the FSSAI to issue appropriate advisories or circulars to ensure procedural compliance and transparency in future cases.

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