NEW DELHI: The food regulator failed to impose Rs 5.60 crore in penalties on 2,430 food businesses that either did not file or delayed filing mandatory annual returns, a CAG audit has found, raising questions over enforcement of basic food safety rules.An audit of the Food Safety and Standards Authority of India’s (FSSAI) Eastern Region office in Kolkata found that 1,018 food businesses did not submit their annual returns, while 1,412 filed them late during 2017-18 to 2022-23.These returns provide FSSAI with information on the quantities of food products manufactured, handled, imported or exported by licensed food businesses during the year. They have to be submitted by May 31. Businesses that miss the deadline are liable to pay a penalty of Rs 100 for each day of delay, subject to the prescribed limit.CAG estimated that Rs 5.60 crore in penalties should have been imposed on the 2,430 businesses. However, the audit found that FSSAI had not imposed the penalties. It also noted that none of the defaulters had their licence suspended or cancelled as of August 2023.
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Following the audit, FSSAI said improvement notices had been issued to some defaulting food businesses and that notices would be issued again to all defaulters.Of the Rs 5.60 crore penalty identified by CAG, Rs 2.27 crore had been recovered, according to the report.The finding is significant because filing an annual return is a basic requirement for licensed food businesses. The audit has highlighted gaps in FSSAI’s monitoring and enforcement of this requirement.