2,430 Food Businesses Defaulted on Annual Returns, CAG Audit Finds
A CAG audit has flagged gaps in FSSAI’s enforcement of annual-return rules in its Eastern Region office in Kolkata. Records showed 2,430 food businesses had either not filed or delayed their mandatory returns during 2017-18 to 2022-23. The audit estimated penalties of ₹5.60 crore, of which ₹2.27 crore had subsequently been recovered.
NEW DELHI: A Comptroller and Auditor General of India audit has highlighted shortcomings in the enforcement of mandatory annual-return requirements by the Food Safety and Standards Authority of India’s Eastern Region office in Kolkata.
The audit examined records for the period from 2017-18 to 2022-23 and found that 1,018 licensed food business operators had not submitted their annual returns, while another 1,412 had filed them after the prescribed deadline. Together, the cases involved 2,430 businesses.
Under the applicable regulations, licensed food businesses are required to submit annual returns by May 31, detailing the quantities of food products manufactured, handled, imported or exported during the previous year. Delayed submission attracts a penalty of ₹100 per day, subject to the applicable limit.
Based on the records examined, CAG calculated that penalties amounting to ₹5.60 crore should have been levied against the defaulting businesses. The audit found that these penalties had not initially been imposed and that, as of August 2023, licences of the identified defaulters had not been suspended or cancelled.
However, the matter has since seen follow-up action. FSSAI informed the audit that ₹2.27 crore in penalties had been recovered.The CAG findings underline the importance of timely regulatory action in the food sector, where maintaining updated records of licensed businesses is an essential part of oversight. At the same time, the subsequent recovery of penalties and additional enforcement measures indicate that corrective action has been initiated following the audit observations.