The Maharashtra Food and Drug Administration (FDA) has suspended the food business licence of Kiranakart Technologies, the parent company of quick-commerce platform Zepto, after an inspection revealed unhygienic storage of food items at its Dharavi facility in Mumbai.
The agency said inspectors observed fungal growth in certain food articles, and storage of products near clogged/stagnant water, indicating poor hygiene. Cold storage temperatures were also not maintained as per regulatory standards.
A Zepto spokesperson said that they have already initiated an internal review and are working closely with the authorities concerned 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,” the company said, adding it is taking all necessary corrective measures to resume operations at the earliest.
The Maharashtra FDA said it had found multiple breaches of the Food Safety and Standards Act, 2006 and the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, during the inspection.
Moreover, wet and filthy floors, with food items stored in a disorganised and unsanitary manner, including directly on the floor, were seen and even expired food products were not clearly separated from non-expired stock.
“These findings constitute a failure to comply with the conditions of the licence,” the agency said in a statement. The licence will remain suspended until full compliance is achieved and verified by the authority.
The inspection was conducted based on information received from minister of state for FDA Yogesh Kadam, it said.
Zepto, which is gearing up for an IPO, had recently temporarily shut down 44 of its Cafes due to supply chain issues. While these are expected to be operational again by September, the Cafe employees in these locations have been asked to work either at the dark store or a nearest Zepto Cafe.