Fungal Growth, Expired Stock: Zepto’s Licence in Dharavi Suspended by FDA

Moneylife Digital Team 02 June 2025

Investor Interest

The Maharashtra food and drug administration (FDA) has suspended the food business licence of Zepto’s warehouse in Dharavi, Mumbai, citing serious non-compliance with food safety regulations. The action was taken after an inspection revealed multiple violations, including fungal growth on food articles, improper maintenance of cold storage temperatures and unhygienic storage conditions.

The inspection was carried out following information received from Yogesh Kadam, Maharashtra's minister of state for FDA. Officials observed that expired food products were stored alongside valid stock, food packets were placed directly on wet and dirty floors and items were kept near clogged and stagnant water. These findings, the FDA says, posed significant risks to consumer health.

The agency stated that Kiranakart Technologies, the firm that operates Zepto, had violated provisions under the Food Safety and Standards Act, 2006, and the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011. “The findings constitute a failure to comply with the conditions of the licence. Accordingly, Anupamaa Balasaheb Patil, assistant commissioner for food, ordered an immediate suspension under section 32(3) of the Food Safety and Standards Act, 2006, and regulation 2.1.8(4) of the Licensing and Registration Regulations, 2011,” FDA says in a statement.

The suspension will remain in effect until the Dharavi facility achieves full compliance and secures clearance from the licensing authority, FDA added.

In response to media queries, a Zepto spokesperson said the company has initiated an internal review and is committed to addressing the lapses. “At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable. 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 spokesperson told Business Standard.

Zepto, a quick-commerce platform known for its fast grocery deliveries, has recently faced criticism over hygiene concerns. In the past few months, videos purportedly showing poor storage conditions at various Zepto warehouses in Mumbai have gone viral, further amplifying scrutiny of the company's operational standards.

FDA’s findings and the subsequent suspension of the warehouse licence have intensified concerns about food safety practices in the fast-growing online grocery delivery sector. Regulatory authorities are expected to keep a close watch on similar facilities to ensure compliance and protect public health.

Comments

User

iaminprabhu

5 months ago

Shocking DIRTY WAREHOUSE condition & Food Products stored (expired stocks too) found in FDA audit!

Imagine the ZEPTO Internal Systems & FAILURE of Audits of Warehoyses across the Country! Such Organisation's must be SHUT across the country, till they CONFIRM ON PAPER that all FOOD SAFETY STORAGE norms are followed by them everywhere.

FDA should then do SURPRIZE RANDOM AUDITS in 7 days before oremussion to do business is given back