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FSSAI Licence Suspension at a Water Plant: Improvement Notice, Show-Cause and Appeal

A packaged drinking water unit in Budgam lost its licence after an unanswered show-cause notice. How Section 32 of the FSS Act works, and what plant owners should do when a notice arrives.

A hand ticking items on a checklist on a tablet
Photo: Jakub Żerdzicki / Unsplash

On 27 October 2026, the Food and Drugs Administration (FDA) of Jammu and Kashmir announced that it had suspended the FSSAI licence of a packaged drinking water (PDW) unit at Kakan Maran in Budgam district. The unit was told to stop all activity at the premises "until further orders".

The case is a useful reminder of how the suspension process works under the Food Safety and Standards Act, 2006, and of what a plant owner can still do once a notice arrives. This guide explains the steps in plain language.

What happened in Budgam

According to reports published on 27 October 2026 by The Kashmir Horizon (citing GNS) and Only Kashmir:

  • A Food Safety Officer inspected the unit and found deficiencies in water quality testing and monitoring, food safety management and statutory documentation. The unit could not produce the required records.
  • The bottle capping and sealing mechanism was defective and caused leakage.
  • A show-cause notice was issued. Only Kashmir reports that the inspection took place on 5 October and the notice was issued on 7 October 2026. No reply was received within the time allowed.
  • The Designated Officer, Food Safety, Budgam, then suspended the licence under Section 32(3) of the FSS Act.

The FDA's statement also noted that packaged drinking water is a high-risk food category that needs regular testing and proper documentation. Neither report mentions any laboratory test result.

How Section 32 works: notice, suspension, cancellation, appeal

Section 32 of the FSS Act sets out a step-by-step process. The summary below is general information; always read the actual notice you receive.

StageWhat the Act providesWhat the plant should do
Improvement notice, Section 32(1)The Designated Officer states the grounds, lists the failures and the measures needed, and gives at least 14 days to complyFix each listed point, keep proof (photos, lab reports, invoices), reply in writing before the deadline
Suspension, Section 32(2)If the improvement notice is not complied with, the licence may be suspendedStop production as ordered, complete corrections, request re-inspection
Cancellation, Section 32(3)If non-compliance continues, the licence may be cancelled after a show-cause opportunityReply to every show-cause notice on time with documents; silence is treated as no defence
Immediate suspension, proviso to Section 32(3)A licence can be suspended at once in the interest of public health, with reasons recorded in writingAsk for a copy of the order and the inspection report
Appeal, Section 32(4) and (5)Appeal lies to the Commissioner of Food Safety of the state, within 15 days of the decision being servedFile within 15 days; attach compliance evidence

The most important lesson from Budgam is simple: a show-cause notice that goes unanswered leaves the officer with only the inspection findings on record.

What recent court decisions say

High Courts have looked closely at suspension orders in the last two years. Two examples:

  • On 16 May 2025, the Madras High Court set aside the suspension of the entire licence of A.R. Dairy Food, limited the interim restriction to the product in question, and asked the authority to decide afresh following due procedure (as reported by LawChakra and SCC Online).
  • In Hotel Alankar v. State of Maharashtra, reported by Verdictum on 12 September 2026, the Bombay High Court restored a licence after a re-inspection scored 97%, holding that suspension cannot continue indefinitely once deficiencies are fixed, unless there is an exceptional threat to public health.

These rulings do not mean a notice can be ignored. They show that documented corrections and a timely re-inspection request carry real weight.

What this means for water plant owners

Since the FSSAI order of 29 November 2024, packaged drinking water and mineral water are in the high-risk food category, with risk-based inspection every year. From 1 January 2026 the FSSAI Scheme of Testing also requires monthly microbiological testing, source-water testing at FSSAI-notified NABL labs and five years of records. Inspectors will ask to see these records.

A practical checklist before any inspection:

  • Keep the FSSAI licence, its product endorsements and the address on it matching the actual plant.
  • File every lab report (product and source water) month by month, in one place.
  • Maintain daily logs: cleaning, ozonation or UV checks, filter changes and batch coding.
  • Check the capping and sealing line daily for leaks; record the check.
  • Keep your CGWA NOC and Pollution Control Board consents valid, because a food safety visit often leads to questions on these too.
  • Name one person to receive notices and track reply deadlines.

If a notice does arrive, read the deadline first, reply in writing within it, attach evidence for each point, and keep proof of delivery.

How ClearPath Compliance India can help

We help packaged drinking water plants in Rajasthan and nearby states prepare for FSSAI inspections, organise testing and record files, and draft replies to improvement and show-cause notices with supporting documents. We also handle the CGWA, Pollution Control Board, factory and fire approvals that inspectors often check alongside. For new units, our PDW plant approval checklist lists every licence in order. Contact us for a pre-inspection review.

Sources

General information only, not legal advice. Rules and case details are as reported by the sources on the dates stated; read the actual notice and the official Act text before acting. Brand and business names, if any, are trademarks of their owners and are used for identification only. This article is not sponsored or endorsed by any brand named.

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