Karnataka has directed authorities to suspend the food licences of Amazon, Swiggy Instamart and BigBasket after toxic datura fruits and seeds were found being offered for human consumption.

The state food-safety department said the plant has toxic properties and its consumption can cause serious adverse health effects. The platforms have also been asked to remove the listings and stop the sale and distribution of datura fruits and seeds for human consumption.

But why do e-commerce and quick-commerce platforms need food licences in the first place, who issues them, and what does their suspension mean?

Story continues below this ad

Why do e-commerce and quick-commerce platforms have food licences?

Under the Food Safety and Standards Act, 2006, businesses involved in the sale and distribution of food are regulated as Food Business Operators (FBOs). E-commerce and quick-commerce platforms that sell food products also fall under this category and are thus required to comply with food-safety obligations, even if they are online platforms and not brick-and-mortar stores.

Under FSSAI rules, e-commerce FBOs are required to obtain a Central Licence from the Central Licensing Authority, irrespective of their turnover. While an online entity that merely provides a directory or listing of food businesses may be exempt, one that also facilitates orders or transactions requires an FSSAI licence.

Here’s what Datura is and why it is dangerous. (Chart generated by AI)

This does not mean every part of an e-commerce company’s operations is covered by a single Central Licence. Under FSSAI’s FoSCoS system, each food-business location generally requires a separate licence or registration. Where an FBO operates in more than one state, it must have a Central Licence for its head/registered office and separate licences or registrations for other locations, depending on the applicable eligibility criteria.

The Karnataka order specifically identifies the Designated Officer (Central) for Central Licences and the Designated Officer (State) for State Licences or Registrations, and directs the respective competent authorities to take action.

What specific action has Karnataka taken, and why?

Story continues below this ad

The Karnataka State Food and Drug Administration (KSFDA) has directed the competent authorities to suspend the food licences issued to Amazon, Swiggy Instamart and BigBasket until further orders. It has separately directed officials to immediately suspend the licences or registrations of establishments and sellers supplying datura products to these platforms.

Further, the platforms and FBOs concerned have been directed to immediately remove or discontinue all listings of datura fruits and seeds for human consumption. They have also been directed not to display, sell or distribute these products for human consumption in future.

The mature (left) and immature (right) datura fruit. Wikimedia Commons

The suspension is not necessarily permanent. The three platforms have been asked to submit compliance reports to the authorities, after which a decision may be taken on revoking the suspension. The authorities must give the concerned parties an opportunity to be heard before passing appropriate orders.

What does suspending a food licence mean for these platforms?

Story continues below this ad

A food licence allows an FBO to conduct the food business activities authorised under that licence; thus, a suspension of such a licence stops those activities for the duration of the suspension.

However, the Karnataka order does not specify the licence numbers being suspended or the particular premises or operations of Amazon, Swiggy Instamart and BigBasket covered by them. This matters because an e-commerce company may operate through multiple licensed premises and entities.

It therefore cannot be determined from the order alone whether the three platforms must cease all food sales across Karnataka. The precise operational impact will depend on which licences are suspended and the activities and premises covered by them.