Delhi High Court orders FSSAI to pause licence cancellation over ITC’s ‘100%’ atta claims

Delhi HC stops FSSAI from cancelling ITC’s licence over ‘100%’ Aashirvaad atta claims as the court considers the regulator’s jurisdiction.

Delhi HC halts FSSAI action against ITC over claims

In May 2025, FSSAI issued an advisory to all food business operators, asking them to discontinue the usage of “100%” on food product labels, packaging, and promotional content

The Delhi High Court has halted FSSAI's license cancellation for ITC's Aashirvaad Atta. This interim protection prevents action over "100%" claims on packaging and advertisements. The court will decide on jurisdiction and the maintainability of a related plea. FSSAI had issued notices regarding alleged misleading claims on food products. The next hearing is scheduled for September 9, with an order on August 31.

The Delhi High Court has asked the Food Safety and Standards Authority of India (FSSAI) to refrain from taking any decision to cancel ITC’s licence over the company’s use of “100%” claims on its Aashirvaad Shudh Chakki Atta product.Justice Swarana Kanta Sharma issued notices to FSSAI and other respondents on ITC’s petition challenging the regulator’s advisory on “100%” claims used on food products. The court has listed the matter for further hearing on September 9.ITC challenges FSSAI advisoryThe court directed FSSAI to “hold its hands” and not proceed with any licence cancellation until the next hearing. It has also asked the parties to submit brief notes addressing the question of jurisdiction. ITC Ltd's Q1 FY27 Consolidated Net Profit Declines 15.61% To ₹4,508.79 CroreFSSAI has opposed ITC’s petition, arguing that the High Court does not have jurisdiction to hear the challenge.ITC, however, has described the regulator’s action as arbitrary and beyond its powers under the Food Safety and Standards Act, 2006. The company has argued that food businesses are required to comply with the Act, rules and regulations, but are not legally bound by an advisory issued outside that statutory framework.Dispute centres on ‘100%’ labellingThe legal dispute stems from an FSSAI advisory dated May 28, 2025, which asked food business operators to stop using “100%” on food labels, packaging and promotional material.ITC has challenged both the advisory and subsequent regulatory actions. These include an August 10 show-cause notice alleging non-compliance and an August 13 improvement notice directing the company to remove certain claims from product labels, advertisements and its website. ITC has argued that existing food-labelling regulations do not expressly prohibit “100%” claims. It has cited Regulation 4(4) of the Food Safety and Standards (Labelling and Display) Regulations, 2020, which permits label information provided it does not conflict with applicable regulations.The company has also relied on the Food Safety and Standards (Advertising and Claims) Regulations, 2018, arguing that these rules similarly do not prohibit the use of “100%”.

The Delhi High Court on Tuesday asked the Food Safety and Standards Authority of India (FSSAI) to hold off on any decision to cancel FMCG major ITC’s licence over its use of “100%” claims on its ITC Aashirvaad Shudh Chakki Atta product, while seeking the regulator’s response to the company’s plea.Justice Swarana Kanta Sharma issued notice to the FSSAI and other respondents on ITC’s petition challenging the regulator’s advisory on the use of “100%” claims on food products.The court will hear the matter next on September 9.Also Read: FSSAI cracks down on ‘100%’ claims: Amway India, Emami, Bonn Biscuits withdraw misleading labelsThe court said no decision regarding cancellation of ITC’s licence should be taken until the next hearing and asked the FSSAI to “hold its hands” in the meantime.The parties have also been directed to file a brief note on the issue of jurisdiction, after the FSSAI opposed ITC’s plea on the ground that the high court lacked jurisdiction to entertain the challenge.As per its petition, filed by counsel Rohit Sharma, ITC has termed the FSSAI advisory arbitrary, arguing that it goes beyond the regulator’s powers under the Food Safety and Standards Act, 2006, and bypasses the framework prescribed under the law.The company said food business operators are bound by the Act, its rules and regulations, and that the law does not provide for them to be bound by an advisory issued outside this framework.ITC has challenged the FSSAI’s May 28, 2025 advisory, which asked food business operators to discontinue the use of the term “100%” on food product labels, packaging and promotional material.The company has also challenged a show-cause notice issued on August 10 alleging violation of the advisory and an improvement notice issued on August 13, directing it to remove certain terms from its labels, advertisements and website and submit a compliance report within 15 days.The August 10 notice had given ITC 30 days to submit its clarification.Also Read: FSSAI issued 150 notices to food companies in recent months over misleading advertisementsITC has argued that existing regulations do not prohibit the use of “100%” on food products. It cited Regulation 4(4) of the Food Safety and Standards (Labelling and Display) Regulations, 2020, which permits information on labels as long as it does not conflict with the regulations.The company has also pointed to the Food Safety and Standards (Advertising and Claims) Regulations, 2018, saying these too do not prohibit the use of “100%”.