Why Zepto’s Food License Was Cancelled by Maharashtra FDA in Mumbai’s Dharavi

Maharashtra's Food and Drug Administration (FDA) has suspended Zepto parent's food business license late on Sunday evening after finding several lapses at its Dharavi dark store in Mumbai.

Why Was The Food License Cancelled?

The state's FDA found that several food articles in Zepto's Dharavi dark store had fungus growing on them, products stored in and near clogged and stagnant water, which indicates poor hygiene.

The agency also found out that the temperatures of the cold storage were not maintained according to the regulatory standards.

Additionally, expired food products were not stored separately from the stock that had not expired.

"These findings constitute a failure to comply with the conditions of the license," the FDA said in its statement.

These slips have led to the suspension of Zepto's food business, owned by Kiranakart Technologies Pvt Ltd.

The suspension will remain in place until the company has corrected course and the FDA is convinced.

Previously in May, Zepto had also closed its cafe services in more than seven north Indian cities as the company was facing a supply crunch and some of its employees had not reported to work.

This development came as the Aadit Palicha-led company has been struggling with growth and competition from quick-commerce companies is intensifying.

What Does Zepto Have To Say?

Responding to the suspension a Zepto spokesperson said, "At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable. We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance.

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

Zepto said that it is also taking all necessary corrective measures to resume operations in accordance with regulatory obligations and applicable laws at the earliest.

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