Our Bureau

Mumbai, Aug. 13 Retail company Subhiksha’s woes are far from over with Maharashtra’s Food and Drug Administration (FDA) increasing the suspension period of its licence to 20 days, starting August 20.

The Chennai-based retailer came under the FDA scanner after the regulator’s inspectors raised concerns on hygiene and the repackaging of goods at its warehouse in Bhiwandi, on the outer fringes of the city.

Subhiksha had appealed to the FDA Commissioner, against the earlier suspension for 10 days that it faced, after the FDA first raised hygiene related issues.

But in its recent order, the FDA dismissed the retailer’s appeal and instead increased the period of suspension of licence of its two trading firms, an FDA source told Business Line. Five firms were operating at the location, and the licences of three packaging firms have been cancelled, a senior FDA official said.

Meanwhile, Subhiksha’s Managing Director, Mr R. Subramanian, has been quoted by a news agency saying that the firm would appeal the FDA decision at the High Court. The retailer had said that it was being targeted, indicating that business rivals were involved in turning the heat on them.

However, an FDA official familiar with the raid on Subhiksha’s warehouse told the correspondent that the initial suspension came after samples picked up from the warehouse raised concerns on quality and repackaging.

Our Chennai Bureau adds : Mr Mohit Khattar, President, Marketing, Subhiksha, said that the FDA case is that it found hygiene conditions at facilities of Subhiksha vendors and at one of its three warehouses in the State, not satisfactory.

“Subhiksha does not sell prepared food; it sells dry groceries such as rice and wheat. The lack of hygiene cited was mainly on issues like painting of walls, flooring quality and cobwebs on ceilings.”

Mr Khattar said that its network of 226 stores in Mumbai and Maharasthra would be unaffected as supplies would be sent from two other warehouses.

Mr R. Subramanian, in a statement, said that the vendor companies were not even given a show cause notice in the first place and they had a suspension and now a cancellation has been “inflicted on their own appeal.”

He said that “it is quite obvious that the orders are not passed in normal course and seem to be done to please certain vested interests who have been attempting to sully our reputation.” He indicates that Subhiksha being at the forefront of discount retail has attracted such retaliation.

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