Quick commerce start-up Zepto has come under regulatory fire as the Maharashtra Food and Drug Administration (FDA) suspended the food business license of its parent company, Kiranakart Technologies Pvt Ltd, for its Dharavi facility over alleged violation of food safety and hygiene norms.
Food safety officer Ram Bodke conducted a surprise inspection at Zepto’s Dharavi facility on May 31 after Minister of State for FDA Yogesh Kadam ordered for the same. The inspection revealed multiple breaches of the Food Safety and Standard Act, 2006,
Some media report stated that the inspection discovered visible “fungal growth” in food items stored close to stagnant and clogged water. In addition, cold storage units failed to maintain the required temperatures, while floors wee wet, unclean, strewn with food products directly on the ground. The officer also found that expired items were mixed with fresh stock.
These findings highlighted “non-compliance” with the conditions of the food business, the FDA said, while warning about a clear risk public health. After this, assistant commissioner (Food) Anupamaa Balasaheb ordered the immediate suspension of Dharavi facility under 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.
The suspension will remain in effect until the facility achieves full compliance and formal clearance for the same.
Zepto's Response
Responding to FDA action, Zepto said that maintaining the highest standards of food safety and hygiene is non-negotiable at the quick commerce platform.
"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," the spokesperson said.
"We are taking all necessary corrective measures to resume operations in accordance with regulatory obligations and applicable laws at the earliest," he added.
Quick Commerce Under Scrutiny
This is not the first time that a quick commerce platform came under scrutiny over food safety standards. In November 2024, the Food Safety and Standards Authority of India (FSSAI) had requested that all quick commerce and e-commerce platforms comply with food safety standards.
The food safety regulator asked the platforms to comply with the norm of the Food Safety and Standards Amendment Regulations 2020.
Under the provisions of the act, sellers and platforms should list and deliver food items that have a minimum of 30% of their shelf life remaining, or at least 45 days before the expiration date.
It also asked them to prioritise training delivery personnel in proper food handling practices. Additionally, the should conduct medical testing for the delivery staff.
