Hospitality Industry Seeks PM Intervention Over FDA Enforcement

The hospitality industry in Maharashtra has sought the intervention of the Prime Minister and the Chief Minister over the enforcement drive by the Maharashtra Food and Drug Administration (FDA).

The industry bodies, including the Hotel and Restaurant Association Western India (HRAWI), the National Restaurant Association of India (NRAI), and the Indian Hotel and Restaurant Association (AHAR), have jointly urged the government to enforce due process and protect businesses.

They have stated that while they support stringent food safety measures, the current enforcement tactics violate established statutory procedures. The dispute is over a compliance order issued by the Maharashtra FDA on June 23, 2026, which the industry representatives claim contains directives inconsistent with the Food Safety and Standards (FSS) Act, 2006.

The associations have pointed out that the order was implemented without mandatory stakeholder consultations and that licenses are being abruptly suspended or revoked without a minimum 14-day improvement notice. This, they claim, is in violation of section 32 of the FSS Act, which mandates a minimum 14-day improvement notice allowing food business operators (FBOs) to rectify specific non-compliances before license suspension or cancellation occurs.

The industry bodies have also raised concerns over the public release of business names, photographs, and video footage before investigations or appeals are concluded, which they claim creates irreversible financial and reputational harm.

The hospitality industry has emphasized that it has no objection to enforcement or inspections aimed at ensuring food safety and public health, but the sudden suspension or termination of licenses without prior notice or opportunity for corrective action is a matter of grave concern.

The industry serves as a crucial employment driver and tourism catalyst across the country, supporting around 3.2 crore jobs, including direct employment to over 85 lakh people, and contributing Rs 33,809 crore in taxes and 5.8% to the GDP.

The trade association has warned that unpredictable regulatory actions risk alarming investors, destabilizing small and mid-sized enterprises (SMEs), and affecting the overall economy.

The industry has reiterated its demand for serving improvement notices and avoiding the 'name and shame' approach, which it claims is not in line with the legislative intent of the FSS Act.

In conclusion, the hospitality industry in Maharashtra is seeking a more collaborative approach to regulatory updates and enforcement, and is urging the government to protect businesses and ensure due process is followed.

This issue is significant for Mumbai and the state of Maharashtra, as the hospitality industry is a major contributor to the economy and employment. The industry's concerns over the FDA's enforcement drive need to be addressed to ensure that businesses are protected and that the industry can continue to thrive.