Expired Products, Poor Hygiene Lead To Zepto License Suspension In Mumbai

The Maharashtra Food and Drug Administration (FDA) has suspended the food business license of Zepto's parent company, Kiranakart Technologies Pvt Ltd, for its Dharavi facility in Mumbai. The suspension, issued following a two-day inspection on June 1-2, was prompted by serious hygiene and safety violations uncovered during the regulatory visit.

According to the FDA, inspectors found fungal growth on food items, expired products stored alongside fresh stock, and food placed near stagnant and clogged water. Other violations included failure to maintain proper cold storage temperatures and unsanitary conditions such as wet and dirty floors and food being placed directly on the ground. These findings constituted a clear breach of food safety regulations, leading to an immediate suspension of the facility's operational license.

according to TOI The license will remain suspended until Zepto fully rectifies the issues and demonstrates compliance with all regulatory standards. The FDA emphasized that no resumption of activity will be allowed at the Dharavi location until clearance is granted.

In response, Zepto has acknowledged the seriousness of the violations and stated that it has launched an internal review to identify the root causes of the lapses. The company also confirmed it is working closely with the FDA to resolve the issues and resume operations. Corrective actions are underway, including the destruction of expired inventory, improved storage protocols, and enhanced sanitation procedures.

"We are committed to rectifying the lapses identified and strengthening our processes to provide the best and safest quality of products to our consumers," said a Zepto spokesperson. The company has assured the public and authorities that it will implement stronger quality control and hygiene protocols moving forward.

This regulatory action adds to a string of recent challenges faced by Zepto. The company recently paused operations of its Zepto Café service in 44 locations and has been dealing with delivery partner strikes in Hyderabad, indicating a period of operational turbulence for the fast-growing quick commerce startup.

The situation at the Dharavi facility remains under review, with further regulatory inspections expected as Zepto works toward regaining compliance.