Subhiksha gets stay against FDA orders

Food and grocery retailer Subhiksha has obtained a stay against the orders of the Maharashtra Food and Drug Administration (FDA) from Bombay High Court on Friday. A special sitting of the High Court bench passed these orders.

FDA suspended the licence of Subhiksha Trading Services, the warehousing subsidiary of Subhiksha, early this week after it found some food samples adultered in Subhiksha's warehouse in Bhiwandi, on the outskirts of Mumbai.

"The FDA order was supposed to come into effect on August 20. Before that we got stay from the High Court,'' said R Subramanian, managing diretcor of Subhiksha.

The regulator also cancelled the licences of three packagers providing services to Subhiksha for violating the packaging rules. FDA had earlier suspended two trading licences of Subhiksha Trading Services for 10 days. Subhiksha moved an appeal with the FDA against the decision. The FDA Commissioner, who heard the appeal on August 12, today doubled the suspension period.

The three packaging firms that have had their licences suspended are Intuitive Software Design, Quandrangle Trading Services and Analogue Financial Services.

''We believe there is no lapse on our part that provoked the action. It is somebody’s pressure that has led to the current situation,'' said Subramanian after the FDA passed orders.