The Maharashtra Food and Drug Administration has suspended the licence of Subhiksha Trading Services, warehousing subsidiary of food and grocery retailer Subhiksha, for 20 days. The regulator said the action has been taken after inspections last month found that two out of 10 samples were adulterated.
The regulator has also cancelled the licences of three packagers providing services to Subhiksha for violating the packaging rules. The warehouses are based in Bhiwandi, which is on the outskirts of Mumbai.
Subhiksha Managing Director R Subramaniam told Business Standard that the company would approach the Bombay high court to get a stay against the FDA decision. "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," he said.
The FDA action is unlikely to affect the functioning of Subhiksha stores in Mumbai, a company official said.
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.