Madras HC sets aside suspension of AR Dairy's licence, cites lack of hearing
MADURAI: The Madurai Bench of the Madras High Court on Friday set aside the suspension of the licence of AR Dairy Food Private Limited, which had been withheld after the firm allegedly supplied substandard ghee to the prasadam unit of Tirumala Tirupati Devasthanams (TTD).
Justice V Lakshminarayan remitted the matter back to the Central Licensing Authority under the Food Safety and Standards Act, 2006, for reconsideration within a month.
He directed that the designated officer must pass an order on whether the company's licence should be suspended for all its activities or limited only to the manufacture, transportation and sale of ghee.
The judge further observed that even if the officer decides to suspend the licence, it could only be an interim measure and, therefore, must not exceed more than six weeks. Within this period, the officer must decide on whether to cancel the licence by following established procedures.
He added that since the court has passed the order on technical grounds, the company must pay a cost of Rs 2 lakh to the licensing authority within two weeks. Until a final decision is taken, the judge permitted the company to operate its other units, except those producing ghee and milk powder.
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