Zepto's Parent Company Loses Food License After FDA Finds Hygiene Issues in Mumbai

Mumbai — The food business licence of Kiranakart Technologies, the parent firm of Zepto, has been suspended by the Maharashtra Food and Drug Administration (FDA) after an inspection revealed grave violations of hygiene at its Dharavi warehouse.

FDA Finds Fungal Growth and Unhygienic Conditions at Zepto Warehouse

As reported by the Maharashtra FDA, the inspection found fungal growth on particular food items, products stored in the vicinity of clogged and stagnant water, and failure to meet cold storage temperature standards. Expiration date food items that were not kept away from fresh inventory, and food stored straight on dirty and damp floors haphazardly were also found by the inspectors.

"These are a blatant violation of the Food Safety and Standards Act, 2006, and the Licensing and Registration Regulations, 2011," stated the FDA in a release. "The suspension of Zepto food license will continue to stay until such time that complete compliance is confirmed by authorities."

Zepto Responds, Vows Corrective Action

A Zepto spokesperson confirmed the company has launched an internal audit and is actively cooperating with regulatory authorities. “We’re committed to fixing the issues identified and reinforcing safety protocols to ensure the highest quality and hygiene standards for our customers,” the company said.

Inspection Triggered by FDA Minister’s Tip-Off

The FDA made the disclosure that the inspection was done after information that was provided by Minister of State for FDA Yogesh Kadam. The decision has come at a delicate moment, as Zepto is gearing up for its IPO and recently had to shut 44 Zepto Cafes temporarily because of supply chain issues.

Employees of such closed Cafes have been reportedly relocated to dark stores or adjacent Zepto stores, while the operations are anticipated to be restarted by September.