Companies turn to audits, legal advice as FSSAI tightens enforcement

While some companies see stricter enforcement as a way of creating a level playing field, particularly as smaller operators may not have invested adequately in compliance

New Delhi, August 12: With the Food Safety and Standards Authority of India (FSSAI) and State Food and Drug Administrations (FDAs) stepping up action against food safety and labelling violations, food companies and restaurant operators are increasingly turning to internal audits, compliance training and legal reviews to insulate themselves from regulatory action.The crackdown has also triggered a rise in litigation, with some food business operators challenging regulatory orders, while industry associations have urged authorities to ensure that companies are given an opportunity to respond before their names are made public.Ashwini Bhadri, CEO of Equinox Labs, said several restaurant chains and packaged food and beverage companies had approached the firm for internal food safety audits in recent months.“Overall enquiries for internal audits and training of food handlers across the supply chain have gone up tremendously in the past two months, especially to ensure that there are no knowledge gaps,” Bhadri told businessline.Mixed ReactionsThe industry response, he said, has been mixed. While some companies see stricter enforcement as a way of creating a level playing field, particularly as smaller operators may not have invested adequately in compliance, others are concerned about being publicly named for alleged violations before being given an opportunity to rectify them.Alongside operational audits, companies are increasingly seeking legal advice to scrutinise their compliance with food safety and labelling regulations.“Litigation has gone up. We have filed several petitions on behalf of our clients in the past month. There has also been a rise in the number of players approaching food lawyers and legal experts to ensure their labels are compliant with the regulations,” a food safety legal expert said.Federation CommentsThe restaurant industry, meanwhile, has sought a more calibrated approach to enforcement. The Hotel and Restaurant Association (Western India) (HRAWI), National Restaurant Association of India (NRAI) and Indian Hotel and Restaurant Association (AHAR), in a joint statement, welcomed the Maharashtra FDA’s focus on strengthening food safety but called for implementation that balances consumer protection with principles of natural justice.Food lawyer and Partner at PLR Chambers, Harsh Gursahani, said stringent enforcement was necessary but regulators must follow statutory safeguards while taking action against food businesses.“FSSAI’s vigorous enforcement of food safety regulations is commendable. At the same time, it must ensure that all statutory safeguards are strictly followed while taking action against legitimate food business operators,” he said.Corrective ActionFor some companies, the strategy has been rapid corrective action following regulatory inspections. Chheda Specialities Foods, whose licence was suspended over food safety violations, said on Wednesday that it had addressed the observations raised during an inspection of its Palghar facility, completed corrective measures within 48 hours and submitted an action-taken report to the department. Its licence has since been restored by FSSAI.The emerging response suggests that companies are increasingly treating regulatory preparedness as a parallel risk-management exercise. It combines preventive audits and staff training with legal scrutiny of labels and, where necessary, litigation against regulatory orders.Published on August 12, 2026