‘Non-Negotiable’: Zepto Begins Internal Audit After FDA License Suspension, Calls Food Safety

Quick-commerce player Zepto moved into damage-control mode after the Maharashtra Food and Drug Administration (FDA) suspended its food business license late Sunday, citing serious hygiene violations at the Dharavi dark store in Mumbai.

Acknowledging the lapse, Zepto said it has already begun an internal review and is cooperating fully with authorities to restore compliance.

"At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable," said a company spokesperson in response to the Maharashtra Food and Drug Administration’s (FDA) decision to suspend its food business license.

The suspension, which impacts Zepto’s operations at its Dharavi dark store in Mumbai, was announced late Sunday evening following a surprise inspection.

The Aadit Palicha-led quick-commerce startup, operated by Kiranakart Technologies Pvt Ltd, has since launched an internal review and is working closely with authorities to ensure full compliance with food safety norms.

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“We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance,” the spokesperson added.

“We are committed to rectifying the lapses identified, and strengthening our processes to provide the best and safest quality of products to our consumers.”

What Triggered the Suspension?
According to the FDA, inspectors at Zepto’s Dharavi facility found several hygiene lapses, including:
Fungus growing on food articles
Products stored in and around clogged, stagnant water
Failure to maintain cold storage temperatures as per regulatory standards
Expired food items not segregated from fresh stock

“These findings constitute a failure to comply with the conditions of the license,” the FDA said in its official statement. The agency clarified that the suspension will remain in effect until all violations are resolved and Zepto can demonstrate full compliance during a follow-up inspection.

Mounting Operational Challenges
This regulatory blow adds to a challenging quarter for Zepto. Just last month, the company shut down its café services across seven North Indian cities, citing supply shortages and employee attendance issues.