FDA suspends Zepto’s Food License in Dharavi Following Severe Hygienic Infringements

Serving thousands of houses in one of Mumbai’s most congested districts, Zepto’s Dharavi location is a crucial distribution hub. The Maharashtra Food and Drug Administration (FDA) carried out an inspection at the Dharavi outlet of Kiranakart Technologies Pvt Ltd, the parent company of quick commerce platform Zepto. Following this inspection, Zepto Food License has been revoked for its Dharavi facility in Mumbai. 

FDA’s Surprise Inspection

The food safety officer, Ram Bodke, conducted this unexpected check on May 31. It was conducted under the Joint Commissioner (Food) Mangesh Mane’s supervision and with guidance from Minister of State FDA Yogesh Kadam. 

According to the FDA, the investigation found numerous breaches of the Food Safety and Standards Act, 2006, and related licensing laws at the distribution centre. The FDA report states that the inspectors found multiple food items with evident fungal growth and others that were kept close to logged, stagnant water. This increases the possibility of a pest infestation. The facility’s floors were damp, filthy and covered in food items that had been kept there on the ground. The cold storage units were also not kept at the temperatures that were required. Additionally, it was discovered that fresh inventory had been combined with products that had expired. The FDA made a statement saying, “these findings point to gross non-compliance with the conditions of the food business licence and present a clear risk to public health.”

Measures Taken Against Zepto

Following the inspection, Assistant Commissioner (Food) Anupamaa Balasaheb Patil immediately suspended the facility’s licence in accordance with section 32(3) of the Food Safety and Standards Act and Regulation 2.1.8(4) of the Licensing and Registration of Food Businesses Regulations, 2011. Until complete compliance is attained and the facility receives official licensing authority approval, the suspension will stay in place.

FDA’s dedication to strict enforcement was reiterated by FDA commissioner Rajesh Narvekar, IAS. “Protecting consumer health remains our top priority. We will continue regular inspections and take strict action wherever violations are found” the agency said.

Zepto’s Response

Zepto responded to the FDA’s action by stating that the fast-commerce platform will not compromise on upholding the highest standards of food safety and hygiene. “At Zepto, food safety and hygiene are non-negotiable. We have initiated an internal review and are actively cooperating with the authorities to ensure swift rectification. We are committed to resuming operations in full compliance with the law” the spokesperson said. 

Zepto has also started an internal investigation to find out why the Dharavi factory did not adhere to the hygienic regulations. The spokesperson went on to say, “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. We are taking all necessary corrective measures to resume operations in accordance with regulatory obligations and applicable laws at the earliest”

The FDA’s Future Strategy

The FDA intends to examine the facilities of all food delivery and quick commerce platforms in the wake of this occurrence. This includes the likes of Instamart and Blinkit. Sources claim that the Maharashtra health minister has already directed the food and drug authority to conduct thorough inspections at the locations of every meal delivery business in the state.

This enforcement action reminds meal delivery and e-commerce platforms of the importance of following strict food safety and sanitation regulations. As consumers’ dependence on these services grows, regulators are exerting more control to guarantee that public health is not jeopardised.

The revocation of Zepto Food License at its Dharavi location emphasises how important it is that food safety regulations be strictly followed in India’s quickly growing fast-commerce industry. The Dharavi store will stay closed until Zepto resolves the issues and receives approval, demonstrating the FDA’s commitment to safeguarding public health.

About Zepto

The headquarters of the Indian fast-food chain Zepto are located in Bengaluru. Aadit Palicha and Kaivalya Vohra founded it in July 2021. The company is worth more than $5 billion as of August 2024. It runs more than 250 dark businesses in ten Indian cities.

Palicha and Vohra initially called their company KiranaKart, and they partnered with neighbourhood kirana vendors to streamline grocery delivery. However, this strategy failed.

The company established a network of dark retail locations to process orders after undergoing a business transformation and changing its name to Zepto in 2021. In April 2022, Zepto launched Cafe, a business that focuses in coffee and the delivery of ready-to-eat meals. The business introduced Bloom, a platform that enables farmers to oversee food production and transport goods from rural to urban areas, in February 2023.

By using technology and well-located delivery hubs to make daily necessities easily accessible, Zepto hopes to save customers time.

Zepto has revolutionised rapid commerce in India with its promise to deliver a wide range of goods in a matter of minutes, as well as its robust technological foundation, vast fulfilment network, and significant venture capital backing.

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