The Delhi High Court has affirmed its jurisdiction to hear a plea by AWL Agri Business Limited challenging FSSAI notices over product labeling. The regulator had questioned specific health claims on 'Fortune Soya Health' oil, leading to distribution disruptions. The case is now scheduled for a hearing on November 5.
The Delhi High Court has decided to proceed with the legal challenge filed by AWL Agri Business Limited, formerly known as Adani Wilmar Limited, against the Food Safety and Standards Authority of India (FSSAI). On September 1, 2026, Justice Swarana Kanta Sharma affirmed that the court holds the jurisdiction to hear the case, rejecting arguments that the matter should be moved elsewhere. This decision keeps the dispute centered in Delhi, where the regulatory orders originated.
The Labeling Dispute
The conflict stems from a show-cause notice issued by the FSSAI on July 17, which took issue with marketing claims made on 'Fortune Soya Health Refined Soyabean Oil' bottles. Specifically, regulators flagged the '100% Veg' and 'Cholesterol Free' assertions, alleging they violated the Food Safety and Standards (Advertising and Claims) Regulations of 2018 and the 2020 labeling standards. The company is now seeking legal relief to contest these findings, which could have implications for how it markets its products.
Operational and Distribution Impact
Following the FSSAI's initial notice, a directive was sent to food safety commissioners across all Indian states and union territories. This move effectively signaled to local authorities that the product might be considered non-compliant with labeling norms. As a result, distributors and retailers in various regions faced inquiries from local food safety officers throughout August. This led to operational bottlenecks for the company, with some trade partners pausing sales or refusing to stock new inventory to avoid potential regulatory action. The company is now navigating these distribution hurdles while the case progresses.
Financial and Regulatory Context
For investors, the timing of this regulatory scrutiny comes alongside a period of mixed financial performance. In FY26, AWL Agri Business reported a consolidated revenue of ₹74,731 crore, marking a 17% increase year-on-year. However, the company also reported a net profit of ₹1,045 crore, representing a 15% decline compared to the previous year. The broader FMCG sector is currently seeing increased regulatory focus on absolute marketing claims, with courts often granting interim protections to companies while the legality of specific labeling procedures is thoroughly reviewed.
Next Steps for Investors
The case is now scheduled to resume on November 5, when the court will continue to evaluate the merits of the company's challenge. Investors will be watching for any updates on the legal proceedings and whether the court provides any interim relief that could ease the pressure on the company's supply chain and distribution network. Beyond the legal battle, the key monitorables remain the company's ability to maintain profit margins amid volatile global edible oil prices and the ongoing regulatory environment concerning labeling compliance.