Penalty on non compliance with FSSAI rule

by varun · Published November 28, 2020 · Updated December 24, 2021

In this article, we are going to discuss penalty associated with non compliance of FSSAI license. FSSAI no is a mandatory for FBO within India. FSSAI license is usually associated with higher food safety and hygiene. FSSAI requirements states that every FBO need to get FSSAI no for his business. A FSSAI food safety officer can inspect food premise as per FSSAI rule. There are three types of FSSAI registration associated with recent FSSAI regulation–

FSSAI Registration for small operator
FSSAI state license for medium sized operators
FSSAI central license for large size business.

fssai food safety officer

Registration for official FSSAI license is quite easier with all registration can be done online on FSSAI official site. Moreover, there are multiple benefits associated with FSSAI no. Compliance and food safety are two of them. Getting an FSSAI no will make you eligible for participate in various government schemes including to work for government department and ministries. An FSSAI approved business will always be treated more preferably compared to a non FSSAI approved business due to increase compliance with food safety and hygiene.

Benefits of FSSAI food license

There are numerous benefits of FSSAI food license. Some of them are –

Consumer trust for FSSAI approved business

We are living in a information age. with current pandemic of Covid-19. There are has never been greater emphasis on food safety and hygiene then ever before. Consumers are taking food safety and hygiene more seriously. FBO operator with FSSAI license can take advantage of food safety standards associated with FSSAI. Consumers are aware about FSSAI food safety standards and FSSAI approved business would always be more preferable compared to a non FSSAI approved business.

Legal advantage for FSSAI approved business

Most of the FBO within India consider food licensing and registration is cumbersome procedure. But, with increased focused on technology, one can easily register for FSSAI license on FSSAI official website within few hours. Moreover, compliance cost for FSSAI no is lower than penalty one has to file for non compliance with FSSAI no.

FSSAI logo is a hallmark of food safety

A FBO can use FSSAI logo within his business premise, on advertisement materials as well as on food packaging. FSSAI logo is a hallmark of food safety. An FSSAI approved business with help of FSSAI logo can win trust of the end customers more easily compared to a FBO which is not FSSAI approved.

Business expansion for FSSAI company

If an FBO want to expand his business then getting a FSSAI license will help his business in a long way. An FSSAI approved business with high food safety standard can easily apply for food license at different location on the basis of existing food license. Moreover, banks and NBFCS make getting a FSSAI no a mandatory condition for getting bank funding. It is estimated that only 10% of food business operators in India are FSSAI approved. This creates a massive opportunity for a FSSAI registered company to expand and avail bank funding.

An FBO that is not FSSAI approved can be a source of prosecution for a FSSAI food safety officer. One of the main responsibility of an FSSAI food safety officer is to find out non compliant food business. It is always advisable to to register oneself with FSSAI license depending on size and turnover of business.

Consequence of non compliance with FSSAI rule

FSSAI approved business has to comply with FSSAI regulation and FSSAI rules. FSSAI food safety officer can conduct the inspection of business anytime. Based on compliance level of FBO, Food safety officer can mark business in following categories –

Compliance (C)
Non-compliance (NC)
Partial compliance (PC)
Not applicable/Not observed (NA)

Based on compliance level, food safety officer can issue a improvement notice. FSSAI food safety officer can cancel FSSAI license of FBO given his repeated non compliance.

Penalties for non compliance as per FSSAI rule

Various penalties associated with Food safety and standards act,2006 are –

Selling food that is not of quality or standard mandated by FSSAI rule – Penalty for this act under FSSAI regulation is Rs 5 Lakhs. Though for small business holding registration this penalty cannot exceed Rs 25000. FSSAI food safety officer will access the quality and standard of food as per FSSAI regulation 2006.
Sub standard food as per FSSAI requirements – If food is found out to be of sub standard quality then a Food safety officer can impose a penalty of Rs 5 Lakhs on Manufacturer, distributor, importer or seller.
Misbranded food – Anyone found selling or manufacturing misbranded food can get a penalty of Rs 3 Lakhs.
Misleading advertisement as per FSSAI rule – Misleading advertisement is anything – a) that deceitfully describes any food or b) mislead the end consumer about quality or substance. As per FSSAI official rule, any misleading advertisement can lead to a monitory penalty of Rs 10 Lakhs.
Extraneous matter in food – Any Food business operator selling, storing or manufacturing food items that contains food contaminated with extraneous material is liable to a monetary penalty of Rs 1 lakhs.
Failure to comply with FSSAI Food safety officer direction – Any food business operator that fails to comply with direction of FSSAI food safety officer is liable to a penalty of Rs 2 Lakhs. FSSAI regulation mandates every FBO to comply with direction of FSSAI food safety officer. Failing which a penalty is imposed.
Unhygienic processing or manufacturing – If a manufacturer is found to be using unhygienic conditions for manufacturing food items. Then as per fssai licensing and registration, FSSAI food safety officer can impose a penalty of Rs 1 Lakh on the FBO.
Punishment for carrying out a business without a FSSAI license – An FBO who carries out Food business without an FSSAI license is liable to a penalty of Rs 5 Lakhs or 6 month imprisonment or both.
Punishment for Obstructing or Impersonating Food Safety Officer – Anyone who found out to be interfering, unintimidating threatening or assaulting’s a FSSAI field safety officer is liable for a penalty of Rs 1 lakhs. Moreover, FBO found to do any activity that stops FSSAI food safety officer from performing his duty is liable for punishment.

Apart from above offences, there are following offences eligible for monetary penalty under FSSAI act–

Possessing adulterant
penalty for contravention under FSSAI regulation
Punishment for unsafe food
Punishment for interfering with seized items
Punishment for false information
Punishment for subsequent offences
Compensation in case of a death or injury of a customer

FSSAI rule and regulations are a bedrock of FSSAI act,2006. FSSAI license is mandatory for any FBO operating inside country. In this article, we have discussed benefits of FSSAI food license. Penalty for non compliance with FSSAI act was also discussed in great details. For further reading on different types of trade licenses required in India, you can visit our website’s other section.