ITC Gets Delhi HC Relief Over ‘100%’ Atta Claims
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ITC has received interim relief from the Delhi High Court in its dispute with FSSAI over ‘100%’ claims on Aashirvaad M.P. Chakki Atta, with the next hearing scheduled for 9 September.
The Delhi High Court has asked the Food Safety and Standards Authority of India (FSSAI) not to cancel ITC's food business licence for the time being over the company's use of “100%” claims on Aashirvaad M.P. Chakki Atta.
Justice Swarana Kanta Sharma granted interim protection to ITC while hearing the company's petition challenging FSSAI's advisories and notices concerning the claims. The matter will next be heard on 9 September. The court is yet to decide whether the Delhi High Court has jurisdiction to hear ITC's challenge.
What Did FSSAI Ask ITC To Change?
The dispute follows an advisory issued by the FSSAI in May 2025. It asked food business operators to stop the use of “100%” on food product labels, packaging and promotional material.
On 10 August 2026, FSSAI issued a fresh notice to ITC asking the company to explain within 30 days why action should not be taken for allegedly failing to comply with the advisory.
According to the regulator, ITC's labelling and advertising claims such as "100% Atta & 100% Madhya Pradesh Wheat" on the product label and "Made from 100% M.P Wheat only" were considered misleading and against the rules.
What Did The Subsequent Improvement Notice Say?
Three days after the show-cause notice, on 13 August, the Central Licensing Authority in Kolkata issued an improvement notice directing ITC to remove “100% Atta & 100% Madhya Pradesh Wheat” as well as “0% Maida” from the labels and advertisements of Aashirvaad M.P. Chakki Atta.
ITC was given 15 days to submit a compliance report. Failure to comply could have resulted in suspension of its FSSAI licence.
ITC challenged the notice, pointing out that it had been given 30 days to respond to the 10 August show cause notice, but the improvement notice was issued before that period had expired. The company argued that the subsequent notice effectively operated as a final prohibition order.
ITC has challenged both the regulatory action and the underlying May 2025 advisory. The company has argued that FSSAI cannot introduce a binding prohibition through an advisory without following the prescribed process for framing regulations, including publication, approval and parliamentary scrutiny.
During the hearing, FSSAI's counsel questioned whether ITC's petition could be maintained before the Delhi High Court, since the latest improvement notice was issued in Kolkata. The question of territorial jurisdiction remains unresolved. The court has therefore granted interim protection while the issue is considered, with the case listed for 9 September.
How Has The ITC Stock Performed Since The FSSAI Notice?
ITC shares closed at ₹278.5 on 13 August, the day the Central Licensing Authority issued the improvement notice. The stock then fell to ₹267.05 on 19 August on the National Stock Exchange. Since then, it has shown stable performance and closed at ₹271.4 on 25 August, a gain of 0.63%.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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