‘Fungal Growth, Poor Hygiene’: Serious lapses found at Zepto Dharavi facility, licence suspended; quick commerce platform vows ‘full and swift’ compliance

Zepto Dharavi Food Licence Suspended: Bengaluru-headquartered quick commerce company Zepto said on Monday that it has initiated an internal review while maintaining the highest standards of food safety and hygiene, after an investigation unearthed serious lapses at its facility in Mumbai’s Dharavi neighbourhood in Maharashtra. Earlier, a probe by the Mumbai division of the Maharashtra Food and Drug Administration (FDA) found “serious non-compliance” with the food safety and standards norms.

Here are 10 things to know about this big news:

FDA investigation reveals serious hygiene lapses at Zepto's Dharavi facility in Mumbai

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• The Maharashtra FDA’s Mumbai division conducted the inspection at the premises of Kiranakart Technologies, which operates the Zepto quick commerce platform, on the basis of information received from Minister of State for Food and Drug Administration Yogesh Kadam.
• The probe, led by Food Safety Officer Ram Bodke, led to the detection of five serious lapses at the facility.

Zepto Food Warehousing Licence Suspended | Details of violations, from fungal growth to expired products...

• Here’s a summary of the key observations made by the authorities:
  • Fungal growth observed on certain food articles
  • Storage of products near clogged/stagnant water, indicating poor hygiene
  • Cold storage temperatures not maintained as per regulatory standards
  • Wet and filthy floors, with food items stored in a disorganised and unsanitary manner, including directly on the floor
  • Expired food products found not clearly separated from non-expired stock

Zepto promises swift action and full regulatory compliance

• Promising to continue to ensure the highest standards of food safety and hygiene standards non-negotiably, a Zepto spokesperson said: “We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance.”
• “We are committed to rectifying the lapses identified, and strengthening our processes to provide the best and safest quality of products to our consumers,” said the quick commerce firm’s spokesperson, adding that the company is taking “all necessary corrective measures to resume operations in accordance with regulatory obligations and applicable laws at the earliest”.
• Zepto Dharavi Licence Suspension: Under existing laws, the food licensing authority issues the licence to an applicant on the basis of certain conditions.
• The suspension order, which came into force immediately, will remain in effect indefinitely until Zepto achieves full compliance and receives due approval from the licensing authority.
• The Maharashtra food regulatory authority said it continues to uphold its commitment to ensuring public health through strict and transparent enforcement of food safety regulations.
• The news comes at a time when quick commerce has emerged as an emerging segment within e-commerce, with a boom in demand for speedy delivery and enhanced convenience particularly in the post-COVID years. Many analysts have a positive outlook on the domestic quick commerce market.
• Meanwhile, many e-commerce players have entered quick commerce in the recent past to secure a slice of the emerging sub-market amid forecasts of a long-term uptrend.