Swiggy shares slip after FSSAI issues nine notices to Instamart

MUMBAI: A sour aftertaste reached Dalal Street before breakfast. Shares of Swiggy fell more than 1 per cent on July 13 after the Food Safety and Standards Authority of India (FSSAI) said it had issued nine notices to Swiggy Instamart over multiple consumer complaints alleging the delivery of expired, spoiled and unsafe food products.

Following the development, Swiggy’s stock was trading around 1.2 per cent lower at Rs 269.88 during morning trade as investors reacted to the regulator’s action.

According to FSSAI, the notices were issued under the Food Safety and Standards Act, 2006, after complaints raised concerns over food quality, product safety and compliance practices on the quick-commerce platform. The regulator has asked Swiggy Instamart to submit a detailed explanation along with a compliance report, warning that failure to do so could invite legal action.

The complaints cited by FSSAI include allegations of expired, rotten, contaminated and otherwise unsafe food items being delivered through the platform.

Among the products mentioned were Healthify 100% Whey Protein and Noice Homestyle Madras Mixture with Peanuts, which were allegedly supplied beyond their expiry dates. The regulator also referred to complaints involving expired eggs, spoiled ready-to-eat food and damaged packaged products.

One complaint reportedly involved Akshayakalpa Organic Eggs that were allegedly rotten, contaminated and emitting a foul odour. Another related to Kakke da Paratha, which consumers claimed was delivered in a spoiled condition. FSSAI also noted allegations involving contaminated milk and eggs.

The regulator flagged a particularly serious complaint involving an infant food formulation that was allegedly delivered in a deteriorated condition showing signs of contamination and improper storage. According to the complaint, the same product was reportedly delivered again even after the original order had been returned.

Beyond product quality, FSSAI highlighted compliance-related concerns, including allegedly incorrect or invalid licence numbers and instances where food businesses appeared to be operating under names different from those registered with the regulator.

It also noted that several consumers were dissatisfied with the platform’s response, claiming their grievances were addressed only through refunds without a proper investigation into the food safety issues raised.

Responding to the notices, an Instamart spokesperson said the company is reviewing the listings identified by FSSAI and is working closely with the regulator to resolve the matter.

The action forms part of a broader compliance drive by FSSAI. Over the past two to three months, the regulator has issued notices to multiple food companies, quick-commerce platforms, alcoholic beverage makers and energy drink brands over alleged violations relating to labelling, misleading claims and food safety.

Among those receiving notices were Lotte India, Ferns N Petals and Kubera Foods over labelling concerns. FSSAI also issued notices to six energy drink brands Red Bull Energy Drink, PepsiCo’s Adrenaline Rush Energy Drink, Reliance Consumer Products’ Campa Energy Drink Gold Boost, Sting Energy Drink, Hell Energy and Coca-Cola-backed Monster Energy over alleged misbranding and misleading claims.