Delhi High Court seeks Centre, FSSAI’s response to plea against ‘ban’ on Fortune soyabean refined oil

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

The company has challenged FSSAI’s action on two claims made on the packaging of the product: “100% Veg” and “Cholesterol Free – For Healthy Lifestyle”.

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

The authorities contended that no part of the cause of action had arisen in Delhi as the company was based in Gujarat and the product was manufactured and marketed from outside the Capital.

The court, however, noted that the actions primarily challenged by the company had been taken by FSSAI in Delhi and formed the basis of the reliefs sought in the petition.

“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,” it said in an order passed on Monday (August 31).

According to the petition, FSSAI issued a show-cause notice to the company on July 17, alleging violations of the Food Safety and Standards (Advertising and Claims) Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020.

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 has contended that the communication effectively classified its soyabean oil as a “non-compliant product” and exposed the company and its distributors, stockists, wholesalers and retailers to enforcement action across the country.

The company has further claimed that some of its distributors informed it in August that food safety officers had visited their premises and directed them to stop selling the product. Following the action, retailers allegedly declined fresh orders and distributors sought the return of existing stocks, the petition said.

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