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Delhi High Court Stays FSSAI’s ‘Electrolyte’ Label Crackdown on FDC’s Enerzal, Grants Eight Months to Exhaust Existing Stock

Delhi High Court Stays FSSAI’s ‘Electrolyte’ Label Crackdown on FDC’s Enerzal, Grants Eight Months to Exhaust Existing Stock

FDC Limited vs Union of India [Decided on August 26, 2026]

FSSAI Electrolyte Label Crackdown Stayed

The Delhi High Court has stayed the 26 May 2026 FSSAI notice after noting that no Section 32 of the Food Safety and Standards Act, 2006 (FSS Act) improvement notice was issued, and asserted that FDC must rework its “Energy and Electrolyte Drink” label within the window. Essentially, FDC Limited secured interim relief from the Delhi High Court against FSSAI’s 26 May 2026 notice that had barred use of the descriptors “electrolyte” and “electrolyte drink” on its Enerzal brand.

The Court held that it was not disputed in the pleadings or during the course of arguments that the improvement notice under Section 32 of the FSS Act had not been given to the petitioner. Without going into the merits of the case, since the Court was only dealing with the grant of interim relief, particularly the prayer for granting time to exhaust existing stock within eight months, change the label, and restrain further seizure or destruction of the products, the Court was inclined to grant limited interim relief.

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A Single Judge Bench of Justice Swarana Kanta Sharma observed that FDC’s label carrying the descriptor “Energy and Electrolyte Drink” had been in use since 2018 and had been scrutinised by FSSAI at the time of successive licence renewals, including the most recent renewal on Jan 28, 2026, without any objection. The petitioner contended that the descriptor merely reflects the composition and true nature of the product, which contains electrolytes, and is supported by scientific data, and that the issuance of the impugned notice four months after the latest licence renewal was inconsistent with the earlier position of the respondents.

The Court noted that the impugned notice directs FDC to cease using the descriptors “electrolyte” and “electrolyte drink” and not to rely upon the Food Category System under Appendix A of the 2011 Regulations, but does not refer to any specific provision of the FSS Act or the regulations as the basis for such directions. The petitioner further submitted that no show-cause notice or improvement notice under Section 32 of the FSS Act was issued before the impugned notice or the subsequent seizures, thereby denying it an opportunity to explain its position, and that similarly situated companies were given an opportunity to modify their labels and seek time for voluntary compliance, whereas no such opportunity was given to FDC.

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On the respondents’ side, the Court noted that the impugned notice was issued after due consideration of the use of the descriptors, and that all concerned FBOs, including FDC, were informed by emails of the meeting held on May 07, 2026 to discuss the issue, but FDC failed to participate. The respondents submitted that the impugned notice was issued in exercise of FSSAI’s statutory functions under Section 18(1)(a) of the FSS Act, with the object of ensuring truthful labelling and protecting consumer interests.

The Court further observed that FDC’s product falls under Food Category 14.1.4.2 and is governed by the relevant provisions of the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, specifically the standard for “Thermally Processed Fruit Beverages / Fruit Drink / Ready to Serve Fruit Beverages.” The respondents submitted that the use of the descriptors “electrolyte” and “electrolyte drink” was examined by the Scientific Panel, which found that such descriptors could not be used for food articles falling under Food Category 14.1.4.2, and that such descriptors, particularly when conveying physiological or therapeutic benefits, may fall within the regulatory domain of the Central Drugs Standard Control Organisation (CDSCO).

The Court noted the respondents’ contention that the meeting held on May 07, 2026 was convened to ensure uniform implementation of the regulatory position, that similar notices were issued to all concerned FBOs and circulated to State Food Safety Commissioners, Central Licensing Authorities, and Regional Directors, and that FDC was neither singled out nor subjected to discriminatory treatment. The respondents further submitted that the search and seizure by the Food Safety Officers was undertaken under Section 38 of the FSS Act, and that the challenge to such seizure proceedings constitutes a separate cause of action for which FDC has an alternate statutory remedy before the concerned adjudicating authority.

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Briefly, FDC Limited, a company incorporated in 1940, is engaged in the manufacture and marketing of a hydration and electrolyte drink under the brand name “Enerzal.” The petitioner has been holding FSSAI Licence since Jan 28, 2017, which was renewed from time to time, with the most recent renewal on Jan 28, 2026. Since 2018, the front-of-pack label of Enerzal has carried the descriptor “Energy and Electrolyte Drink,” which was duly placed before and scrutinised by the FSSAI at each stage of licensing and renewal, including as recently as January 2026.

On May 26, 2026, Respondent No. 2 (FSSAI) issued the impugned notice directing FDC to cease using the descriptors “electrolyte,” “electrolyte drink,” or any similar term, and further directing that the Food Category System under Appendix A of the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, should not be relied upon for product naming or labelling. The impugned notice was simultaneously endorsed to the Commissioners of Food Safety of all States/UTs and to the Central Licensing Authorities for initiating necessary action under the FSS Act, Rules and Regulations.

Pursuant to the impugned notice, Food Safety Officers of Maharashtra conducted search and seizure operations at FDC’s premises at Karodi and Waluj (Chhatrapati Sambhajinagar) on June 02, 2026, at Sonegaon MIDC, Nagpur on June 03, 2026, and at the premises of FDC’s stockist at Chhatrapati Sambhajinagar on June 17, 2026, seizing Enerzal stock cumulatively valued at approximately Rs. 1.12 crores. The stock seized from Waluj was valued at approximately Rs. 36 lakhs from Nagpur at approximately Rs. 55.67 lakhs, from the depot at Chhatrapati Sambhajinagar at approximately Rs. 20.78 lakhs, and a further quantity valued at approximately Rs. 1.01 lakhs were seized at Chhatrapati Sambhajinagar on June 17, 2026.

No improvement notice or show-cause notice under Section 32 of the Food Safety and Standards Act, 2006 was ever issued to FDC prior to the seizures. Despite repeated representations, as well as a meeting held with FSSAI officials on June 05, 2026, the seized stock was not released. FDC submitted a stock statement and proposed revised label to the respondents on June 08, 2026, and thereafter approached the Delhi High Court seeking certiorari to quash the impugned notice, alternatively a period of eight months to exhaust existing stock, restraint on further coercive action, and release of the seized stock.

Appearances

Mr. Sanjay Jain and Ms. Priya Kumar, Senior Advocates with Ms. Vanshika Singh, Mr. Prithvi Singh, Mr. Rohan Seth, Mr. Nishank Tripathi, Ms. Harshita Sukhija, Ms. Rishika Agrawal and Mr. Shreyan Srivastava, Advocates, for Petitioner

Mr. Raktim Gogoi, CGSC along with Ms. Akshita Nigam and Mr. Kaushlendra Dutt Pandey, Advocates for R-1

Mr. Amit Meharia, Ms. Tannishtha Singh and Mr. Shashwat Roy, Advocates for R-2

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FDC Limited vs Union of India

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