The Delhi High Court has directed the FSSAI to stop any punitive action, including license cancellation, against ITC regarding the '100%' claims on its Aashirvaad Atta packaging. This interim relief offers a temporary pause in the dispute while the court reviews the case. The next hearing is scheduled for September 9, 2026, as both parties prepare to argue on the issue of court jurisdiction.
The Delhi High Court has granted temporary relief to FMCG major ITC Ltd., instructing the Food Safety and Standards Authority of India (FSSAI) to refrain from taking any decisive action, such as license cancellation, against the company. The legal dispute centers on the FSSAI's objections to the use of '100%' claims on the packaging of Aashirvaad Shudh Chakki Atta.
Justice Swarana Kanta Sharma has asked the regulator to 'hold its hands' on the matter until the next court hearing, which is set for September 9, 2026. The court has also directed both sides to submit a brief note addressing the issue of jurisdiction, as the FSSAI had contested the court's authority to hear the case.
The conflict arises from an FSSAI advisory issued in May 2025, which directed food companies to stop using the '100%' claim on product labels, advertisements, and websites. Following this, the regulator issued a show-cause notice on August 10, 2026, and an improvement notice on August 13, 2026, demanding compliance and the removal of these claims. ITC has argued that its current labeling fully complies with existing regulations, such as the Food Safety and Standards (Labelling and Display) Regulations of 2020 and the Advertising and Claims Regulations of 2018. The company maintains that the regulator's recent advisory is arbitrary and goes beyond its powers under the Food Safety and Standards Act of 2006.
This regulatory push is not limited to ITC. The industry has been facing increased scrutiny regarding product labeling and marketing claims. Recently, the Delhi High Court granted similar interim relief to Dabur India regarding the regulator's objections to '100% Pure/Natural' labels on its products. This suggests a broader trend of the food regulator attempting to tighten standards on how consumer goods are marketed.
For investors, the immediate concern is not just the legal cost but the potential for operational changes. If the final court ruling upholds the regulator’s stance, companies across the industry, including ITC, may be required to redesign packaging, modify marketing materials, and remove claims that have long been associated with their brand identity. Such changes can impact consumer perception and add to operational expenses.
The key update for shareholders will be the outcome of the September 9 hearing. The court's decision on whether it has the jurisdiction to decide the case will be a significant step in determining how this conflict is resolved.