Closure report mandatory upon licence expiry: Food safety regulator

FSSAI has mandated food business operators (FBO) to submit closure reports upon expiry of their license

The food safety and standards authority of India (FSSAI) has mandated food business operators (FBO) to submit closure reports upon expiry of their licence, according to a notice issued by the national food safety regulator.

Food business operators (FBO) need to confirm that no business activity is conducted at the premises. (Representative file photo)

The notice, titled “Mandatory submission of Closure Report on expiry of FSSAI licence/registration”, said, “All Food Business Operators (FBOs), whose FSSAI licence/registration has been expired during FY 2024-25 are hereby directed to mandatorily submit a closure report.”

In the detailed closure report, FBOs need to confirm that no business activity is conducted at the premises and that they must provide reasons for non-renewal of their licence. The notice, issued on May 16, also directed FBOs to apply for renewal of licence or registration well before the expiration date.

“This report must confirm that no business activity is being conducted at the respective premises on the expired FSSAI licence/ registration number or else, food business shall confirm whether new licence / registration has been obtained. FBOs are also required to further provide specific reasons for non-renewal of the FSSAI licence,” the notice read.

The reasons for closure of business or non-renewal of licence should be submitted in FSSAI’s Food Safety Compliance System (FoSCoS) portal, the food regulator said.

If an FBO continues to operate after the licence’s expiry, a hefty fine will be levied. “It shall be noted that operating a food business on expired FSSAI licence/ registration shall be treated as violation of section 31 of the Food Safety and Standards Act, 2006, and may attract a penalty of up to ₹10 lakh under section 63,” the notice said

FSSAI said this step has been taken for maintaining transparency and traceability in the overall licensing framework created for food businesses operating in the country. “FSSAI has mandated the submission of a closure report upon the expiry of licence/registration. This is crucial for maintaining transparency and accountability in the licensing framework,” the food regulator said in a statement issued on Thursday.

The food regulator has taken the measure amid reports of food business operating on expired licences. A senior official aware of the matter, requesting anonymity, said, “There were reports of food businesses continuing to function even on expired licence till they applied or got their renewed licence. That is not acceptable and needed to stop. This move is an attempt to ensure there is absolute transparency in their functioning.”