Interim relief for ITC: Delhi HC blocks FSSAI from cancelling licence over '100%' atta claims

The Delhi High Court on Tuesday restrained the Food Safety and Standards Authority of India (FSSAI) from taking any action to cancel ITC Limited’s food licence over the company’s labelling claims on Aashirvaad MP Chakki Atta.

Justice Swarana Kanta Sharma granted interim relief to ITC while hearing the company’s petition challenging FSSAI notices that asked it to remove claims such as “100% Atta”, “100% Madhya Pradesh Wheat” and “0% Maida” from the product’s packaging and advertisements.

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Court keeps licence cancellation on hold

The court is yet to decide whether the Delhi High Court should hear ITC’s plea, as FSSAI has raised objections over jurisdiction. The regulator has argued that the latest notice was issued by its Kolkata authority and questioned whether Delhi is the appropriate forum.

Until the jurisdiction issue is decided, the court has directed that no action should be taken against ITC’s licence. The matter will be heard again on September 9.

How the dispute started

The controversy began after an FSSAI advisory issued in May 2025 asked food companies to avoid using “100%” claims on product labels, packaging and advertisements.

On August 10, FSSAI issued a show-cause notice to ITC, alleging that the company had not complied with the advisory. The company was given 30 days to submit its response.

However, three days later, FSSAI’s Kolkata authority issued an improvement notice directing ITC to remove the claims from Aashirvaad MP Chakki Atta and submit a compliance report within 15 days. The notice warned that failure to comply could lead to suspension of the company’s licence.

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ITC challenges FSSAI action

ITC has argued that the improvement notice was issued before it had an opportunity to respond to the show-cause notice. The company has also questioned whether the May 2025 advisory can be used as the basis for such restrictions, arguing that an advisory alone cannot impose binding requirements.

The company has maintained that the dispute is about the wording of the claims and not the quality or composition of the product. ITC has pointed out that FSSAI has not alleged that Aashirvaad MP Chakki Atta contains maida or that the wheat used in the product comes from outside Madhya Pradesh.