The Delhi High Court has directed the Central Government and the Food Safety and Standards Authority of India (FSSAI) to respond within four weeks to a petition challenging regulatory directives that prohibited the manufacture and sale of Fortune Soya Health Refined Soyabean Oil.
Justice Swarana Kanta Sharma listed the matter for further hearing on November 5 after rejecting preliminary objections raised by the authorities regarding the territorial maintainability of the plea.
Jurisdictional Objection Rejected
The respondent authorities had contested the petition, arguing that the Delhi High Court lacked territorial jurisdiction because the petitioner, AWL Agri Business Limited, is headquartered in Gujarat and the edible oil is manufactured and sold outside the national capital.
Dismissing the objection, the court observed that the foundational regulatory actions challenged by the company were initiated by the FSSAI from its headquarters in Delhi. Justice Sharma held that because the statutory authority is located within the court’s territorial remit, it is amenable to the court’s writ jurisdiction.
Dispute Over Product Label Claims
The legal challenge arises from regulatory action against AWL Agri Business concerning marketing declarations on the packaging of Fortune Soya Health Refined Soyabean Oil, specifically the claims “100% Veg” and “Cholesterol Free – For Healthy Lifestyle.”
On July 17, the FSSAI served a show cause notice alleging that these claims contravened the Food Safety and Standards (Advertising and Claims) Regulations, 2018, and the Food Safety and Standards (Labelling and Display) Regulations, 2020. The authority gave the company seven days to explain why action should not be initiated under the Food Safety and Standards Act.
Market Disruption And Enforcement
Alongside the show cause notice, the FSSAI issued a directive on July 17 to food safety commissioners across all states and Union Territories, instructing them to ensure that products designated as non-compliant are not manufactured, distributed, marketed, or sold within their respective jurisdictions.
In its plea, AWL Agri Business stated that this directive effectively treated its refined soyabean oil as a non-compliant item, exposing its entire supply chain—including distributors, wholesalers, and retailers—to enforcement measures nationwide. The company added that during August, food safety officers visited distributor premises and halted product sales, prompting retailers to cancel pending orders and seek returns of existing stock.
