Delhi High Court Seeks FSSAI Reply on Fortune Soybean Oil Ban Challenge

The Delhi High Court has sought responses from the central government and the Food Safety and Standards Authority of India (FSSAI) regarding a petition filed by AWL Agri Business Ltd. The company is challenging the food regulator's decision to prohibit the manufacture and sale of its 'Fortune Soya Health Refined Soyabean Oil'.

The dispute centres on two claims printed on the product's packaging: "100% Veg" and "Cholesterol Free – For Healthy Lifestyle". AWL Agri argues that the FSSAI's action against these declarations is unjustified.

Justice Swarana Kanta Sharma has issued notices to the Ministry of Health and Family Welfare, the FSSAI, and other relevant authorities, granting them four weeks to file their responses. The next hearing is scheduled for November 5.

During the initial proceedings, the authorities raised a preliminary objection, arguing that the Delhi High Court lacked jurisdiction since the company is based in Gujarat and the product is manufactured and marketed outside the national capital. However, the court dismissed this contention, noting that the primary actions being challenged were taken by the FSSAI in Delhi.

"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," the court observed in its order.

According to the petition, the FSSAI issued a show-cause notice to the company on July 17, citing alleged 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, the regulator also communicated with food safety commissioners across all states and union territories, directing them to prevent the manufacture, distribution, marketing, or sale of the product.

AWL Agri contends that this communication effectively labelled its soybean oil as a "non-compliant product", exposing the company and its distributors, stockists, wholesalers, and retailers to enforcement actions nationwide. The petition further claims that food safety officers visited some distributors in August, instructing them to halt sales. This led to retailers refusing fresh orders and distributors seeking to return existing stock.