Closure Reports Now Mandatory

The Food Safety and Standards Authority of India (FSSAI) has made it compulsory for all food business operators (FBOs) to file a closure report if their licence or registration expires during the financial year 2024–25. The national food regulator issued this directive in a notice titled “Mandatory Submission of Closure Report on Expiry of FSSAI Licence/Registration” on May 16.

What FBOs Must Do

FBOs must confirm through the closure report that they have ceased all operations at the premises linked to the expired licence. If they have resumed operations under a new licence, they must clearly state that. Additionally, FBOs must explain why they chose not to renew the expired licence or registration. FSSAI directs businesses to file these reports through the Food Safety Compliance System (FoSCoS) portal. FBOs that continue operations on an expired licence risk heavy penalties. The food regulator warns that this violates Section 31 of the Food Safety and Standards Act, 2006, and can result in fines of up to ₹10 lakh under Section 63.

Why FSSAI Took This Step

FSSAI introduced this rule to tighten oversight and eliminate loopholes in the licensing system. Officials revealed that some businesses had been operating illegally after their licences expired, exploiting delays in the renewal process. A senior FSSAI official, speaking anonymously, said, “We noticed a pattern where businesses continued functioning with expired licences until their renewals came through. That’s unacceptable.”

Boosting Transparency and Accountability

With this move, FSSAI aims to create a more transparent and accountable framework for monitoring food businesses across India. By requiring closure reports, the regulator hopes to ensure traceability and prevent illegal operations.

Source: Hindustan Times