Delhi High Court pauses FSSAI action against ITC over 100 per cent claims

MUMBAI: It is a case where the percentage is proving more than just a number. The Delhi High Court has temporarily restrained the Food Safety and Standards Authority of India (FSSAI) from cancelling ITC’s food business licence over the company’s use of “100%” claims on its Aashirvaad M.P. Chakki Atta.

Justice Swarana Kanta Sharma granted interim protection to ITC while hearing the company’s petition challenging FSSAI advisories and notices directing it to discontinue claims including “100% Atta”, “100% Madhya Pradesh Wheat” and “0% Maida”. The Court has sought FSSAI’s response and listed the matter for September 9.

The dispute dates back to May 2025, when FSSAI advised food businesses to stop using “100%” claims on food labels, packaging and promotional material. The regulator subsequently issued a show-cause notice to ITC on August 10, asking the company to explain why action should not be taken over its continued use of such claims.

The notice questioned claims including “100% Atta & 100% Madhya Pradesh Wheat” on Aashirvaad M.P. Chakki Atta packaging and “Made from 100% M.P. Wheat only” in advertising.

The regulatory action escalated on August 13, when the Central Licensing Authority in Kolkata issued an improvement notice directing ITC to remove the “100% Atta & 100% Madhya Pradesh Wheat” and “0% Maida” claims from the product’s labels and advertisements.

ITC was given 15 days to submit a compliance report, failing which its FSSAI licence could face suspension.

ITC has challenged the action, arguing that the improvement notice was issued before its 30-day response period to the August 10 show-cause notice had expired. The company contends that the move effectively amounted to a final prohibition without giving it adequate opportunity to respond.

The company has also questioned the legal basis of FSSAI’s May 2025 advisory, arguing that a binding prohibition on “100%” claims cannot be introduced through an advisory without following the statutory process for framing regulations.

ITC has maintained that FSSAI has not alleged that the Aashirvaad product contains maida, uses ingredients other than atta or sources wheat from outside Madhya Pradesh.

The proceedings also involve a jurisdictional question. FSSAI has argued that the improvement notice was issued by its Kolkata regional authority and questioned why ITC’s petition should be heard by the Delhi High Court.

ITC, meanwhile, has argued that the dispute concerns a central food licence and that part of the cause of action arose in Delhi.

The High Court has not yet ruled on the jurisdiction issue. For now, it has directed FSSAI not to take any decision on cancellation of ITC’s licence until the matter is heard again.

The case puts the spotlight on the regulatory scrutiny surrounding absolute claims on food packaging and advertising, particularly “100%” statements that can shape how consumers perceive a product. The final position on ITC’s claims will depend on the Court’s further proceedings and FSSAI’s response.