The Madras High Court granted interim relief to AR Dairy Food Private Limited, Tamil Nadu, on February 23, 2025, staying an order suspending its license. The stay applies only to products other than ghee and skimmed milk powder. The court emphasized balancing public interest and the company’s operations.
The Madras High Court has granted interim relief to AR Dairy Food Private Limited, a dairy company based in Dindigul district, Tamil Nadu, by staying an order that suspended its license. However, the stay applies only to products other than ghee and skimmed milk powder. The court’s decision ensures that the company can continue its operations while the legal proceedings continue.
AR Dairy Food Private Limited is a major dairy processor in Tamil Nadu, employing around 400 workers and sourcing milk from approximately 13,000 suppliers daily. The company holds a license for manufacturing various dairy products, proprietary food, and general food processing. Initially issued and later modified on February 22, 2024, the license was valid until June 1, 2029.
The company faced legal trouble after allegations surfaced regarding the presence of foreign fat in the ghee supplied to Tirumala Tirupati Devasthanam (TTD). The issue was flagged by the Institute of Preventive Medicine, Andhra Pradesh, prompting show-cause notices and subsequent responses from AR Dairy. Despite the company’s replies, authorities suspended its license in full, leading to a legal challenge in the Madras High Court.
Justice V Lakshminarayanan, while hearing the case, noted that the suspension was based on a single transaction and shutting down the entire business would have widespread consequences. The court emphasized the importance of balancing public health concerns with the livelihoods of employees and suppliers. The judge, therefore, issued an interim stay on the suspension for all products except ghee and skimmed milk powder.
The court has now directed the Food Safety and Standards Authority of India (FSSAI) and the Central Licensing Authority to file their counter affidavits, with the final hearing scheduled for March 4, 2025. Additionally, the judge dismissed AR Dairy’s petition concerning skimmed milk powder, keeping its suspension intact.
The case highlights the ongoing debate between food safety regulations and the economic impact of enforcement actions on dairy businesses in India. The final verdict is awaited in March, which will determine AR Dairy’s future operations.
