Court proceedings

The Delhi High Court on Monday sought responses from the Centre and the Food Safety and Standards Authority of India (FSSAI) on a petition by AWL Agri Business Ltd challenging the prohibition on manufacture and sale of its 'Fortune Soya Health Refined Soyabean Oil' over alleged misleading label declarations and claims.

Justice Swarana Kanta Sharma issued notice to the Ministry of Health and Family Welfare, FSSAI, and other authorities, directing them to file their responses within four weeks. The matter has been listed for further hearing on November 5.

The authorities had opposed the maintainability of the petition on the ground of territorial jurisdiction, submitting that the company was based in Gujarat and the product was manufactured and marketed from outside Delhi, so no part of the cause of action arose within the court's jurisdiction.

Justice Sharma, however, held that the petition could not be said to lack territorial jurisdiction. "The foundational actions which are directly impugned by the petitioner were taken by FSSAI in Delhi and form the very basis of the reliefs sought in the petition," the court said, as quoted in the reports. "Both respondent nos. 3 and 4 (FSSAI) are authorities situated within the territorial jurisdiction of this court. Thus, insofar as the principal reliefs sought in the petition are concerned, the persons and authorities against whom the writs are sought are amenable to the jurisdiction of this court."

FSSAI's actions

According to the petition, on July 17, FSSAI issued a show-cause notice to AWL Agri Business Ltd alleging contravention of the Food Safety and Standards (Advertising and Claims) Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020. The notice called upon the company to clarify within seven days why action should not be initiated under the Food Safety and Standards Act.

On the same day, FSSAI issued a communication to food safety commissioners in all states and Union Territories, directing them to ensure that products described as "non-compliant products" were not manufactured, distributed, marketed, or sold in their respective jurisdictions.

The petitioner contended that this communication effectively treated its soyabean oil as a "non-compliant product," exposing the company and its distributors, stockists, wholesalers, and retailers to enforcement action across the country.

The company had received FSSAI notices over claims on its product of being "100% Veg" and "Cholesterol Free – For Healthy Lifestyle."

Impact on distribution

In August, some of the company's distributors informed it that food safety officers had visited their premises and directed them to stop selling the product. Following this, retailers declined fresh orders and distributors sought the return of existing stocks, according to the reports.