A Brand Licence, New Kitchens and an E-commerce Listing
A food business in Visakhapatnam operates a central kitchen supplying 1,200 school meals daily, a retail sweet counter and an e-commerce page. It holds a State licence for the central kitchen with annual turnover of ₹12 crore. It opens a second kitchen in Vijayawada, a cold storage in Guntur, and begins using 'FSSAI approved' stickers on sweets. The licence for the original kitchen expired 45 days ago; the renewal application was filed 20 days after expiry with the late fee. An inspection finds the new kitchen operating without any licence and the e-commerce listing displaying the old licence number. The owner says one licence covers the brand, the new units are just storage, and the website is managed by a third party.
1. Determine the licensing position for each premises and activity, including whether State or Central licence is indicated.
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A food licence is premises-specific, not brand-specific. The central kitchen, the retail sweet counter, the Vijayawada kitchen, the Guntur cold storage and the e-commerce food business each require a licence or registration appropriate to the activity. On the stated turnover of ₹12 crore, the manufacturing and catering units fall in the State licence band, not the Central band, unless aggregate turnover across the entity crosses ₹20 crore or another Central trigger applies. The cold storage is a separate food premises and needs its own licence even if it stores only the firm's products. The e-commerce page is an additional distribution channel and the FBO must display a valid licence number for the relevant premises. 'FSSAI approved' is not a permitted substitute for the licence number and can mislead consumers. The owner's 'one brand, one licence' argument is therefore incorrect; the new kitchen should not have started until its licence was obtained.
2. What are the consequences of the expired licence and the late renewal application, and how should the FSO proceed?
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Once the licence expired, the original kitchen was operating without a valid licence until renewal was granted. Filing a renewal 20 days after expiry with the late fee may be permissible within the prescribed window, but it does not retrospectively validate operations during the gap. The FSO should verify whether the renewal was accepted and whether the licence has been granted; until then, the unit should be treated as unlicensed. The inspection should document production and distribution during the gap. Enforcement should be proportionate: an improvement direction to stop unlicensed operations, complete the renewal, and regularise the new premises, with penal action considered if the breach is wilful or repeated. The new kitchen and cold storage should be asked to apply before operation. The FSO should not accept the old licence number on the website as covering the new units. A show-cause notice should give the owner an opportunity to produce records and explain the delay.
3. How should the 'FSSAI approved' sticker and the third-party-managed website be handled?
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The sticker is a labelling and advertising issue. A licence number may be displayed as required, but 'FSSAI approved' suggests an endorsement that the regulator does not give; it can mislead consumers and should be removed unless the exact wording is legally permitted. The website is part of the food business operation, and outsourcing its management does not transfer responsibility. The FBO must ensure that the listing shows the correct licence or registration number for the actual seller or premises, the legal name and address, and accurate product information. The FSO should require correction of the listing and stickers, retain screenshots and labels as evidence, and issue a direction to the FBO, not merely to the web agency. If the website sells food without a valid licence, action can lie against the FBO operating the sale. The third-party contract can be examined for due diligence, but it is not a defence to a regulatory breach.