In a major development that has sent ripples across India’s booming quick commerce industry, Zepto, the Bengaluru-headquartered delivery startup, has had its food licence suspended for its Dharavi facility in Mumbai. This action follows a detailed inspection by the Mumbai division of the Maharashtra Food and Drug Administration (FDA), which exposed multiple severe violations of food safety and hygiene regulations.
The inspection was prompted by inputs from Yogesh Kadam, the Minister of State for Food and Drug Administration, and executed under the supervision of Food Safety Officer Ram Bodke. Zepto operates its quick commerce platform through Kiranakart Technologies.
FDA Investigation Uncovers Five Major Food Safety Violations
The probe conducted at Zepto’s Dharavi warehouse revealed five alarming lapses in the storage and management of food products. According to the FDA report, the violations included:
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Fungal Growth on Food Items: Inspectors discovered visible fungal contamination on several food articles, making them unsafe for consumption.
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Storage Near Stagnant Water: Products were being kept near clogged and stagnant water sources, clearly violating hygiene protocols.
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Cold Storage Temperature Mismanagement: Chilling units failed to maintain temperatures required by food safety norms, risking spoilage.
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Unclean and Wet Floors: The floors were described as “wet and filthy,” with food items placed directly on the floor in a disorganised manner.
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Expired Food Mixed with Fresh Stock: Expired food products were not adequately separated from usable inventory, increasing contamination risks.
These violations prompted the FDA to suspend Zepto’s food licence for the Dharavi location immediately, stating that the licence will remain inactive until full compliance is achieved and approved by the regulatory body.
Zepto’s Response: Internal Review and Commitment to Safety
In response to the damning report, Zepto has announced the launch of an internal review to evaluate operations at its Dharavi facility. The company stated that it remains committed to the highest standards of food hygiene and safety.
“We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance,” a Zepto spokesperson said.
“We are committed to rectifying the lapses identified, and strengthening our processes to provide the best and safest quality of products to our consumers. All necessary corrective measures are being taken to resume operations in accordance with regulatory obligations.”
Legal Implications and Regulatory Background
As per the Food Safety and Standards Act, a food licence can be suspended or revoked if any facility is found in serious breach of hygiene and safety norms. The suspension comes into effect immediately and stays in force indefinitely until rectification is proven and clearance is granted by the licensing authority.
According to officials at the Maharashtra FDA, “the move reflects the regulatory body’s strong commitment to public health and transparency in enforcement.” The authority emphasized that such actions are necessary to maintain consumer trust and prevent potential foodborne illnesses.
Why This Matters: Quick Commerce Under Scrutiny
This development couldn’t come at a more sensitive time for India’s quick commerce industry, which has seen exponential growth post-COVID due to consumer demand for instant deliveries and home convenience.
Zepto, along with competitors like Blinkit, Swiggy Instamart, and BigBasket Now, has been at the forefront of this revolution. However, the industry’s hyper-speed delivery model has often raised concerns about logistical pressures compromising quality control, especially in warehousing and packaging.
Analysts believe that this incident could trigger stricter regulatory audits across the quick commerce ecosystem, forcing companies to balance speed with compliance and consumer safety.
Industry Reaction and Future Outlook
Market experts say this incident should serve as a wake-up call for all quick commerce players. “Growth cannot come at the cost of consumer health. Food safety must be non-negotiable,” said a Mumbai-based food safety consultant.
Meanwhile, the Indian Food Delivery and Quick Commerce Association has issued a general advisory urging all players to review their facilities and uphold food safety standards.
Zepto, one of the youngest unicorns in India’s startup ecosystem, is under pressure to quickly resolve the issues and resume operations in Mumbai, one of its largest consumer markets.
Consumer Impact and Trust Restoration
For Mumbai residents relying on Zepto for everyday groceries and fast deliveries, the suspension is a cause for concern. Many customers expressed shock on social media, sharing images of poorly packaged or expired items they received in the past.
To rebuild consumer trust, Zepto may need to implement:
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Transparent communication regarding internal reviews
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Third-party hygiene audits at all facilities
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Better training for warehouse staff
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Real-time tracking of cold storage and inventory segregation
Only by demonstrating visible improvements and compliance, Zepto can hope to maintain its brand reputation in a highly competitive and scrutinised sector.
