FBO Penalty refers to the fines or punishments imposed on Food Business Operators (FBOs) in India when they fail to comply with the rules and regulations set by the Food Safety and Standards Authority of India (FSSAI). These penalties are designed to ensure that all food businesses follow proper hygiene, safety, and quality standards as outlined under the Food Safety and Standards Act, 2006.
Any individual or company involved in manufacturing, processing, packaging, storing, distributing, or selling food products is considered an FBO. Whether you run a small food stall, a home-based kitchen, a restaurant, or a food manufacturing unit, FSSAI registration or license is mandatory. If an FBO operates without the necessary license or violates any of the FSSAI guidelines, they can face financial penalties, suspension of operations, or even legal action.
Common violations that can lead to FBO penalties include:
- Operating without an FSSAI license or with an expired one
- Mislabeling food products
- Using unsafe or substandard ingredients
- Poor hygiene in food handling and preparation areas
- Failing to comply with packaging and labelling requirements
The penalty amount can range from ₹2,000 to ₹5,00,000, depending on the type and seriousness of the violation. In some cases, repeated non-compliance can lead to cancellation of the license.
For small business owners and first-time entrepreneurs in the food sector, it is essential to understand these penalties to avoid disruptions, legal trouble, or damage to reputation. Staying compliant not only helps in building customer trust but also ensures smooth business operations.
To avoid FBO penalties, it’s recommended to keep your FSSAI registration updated, follow hygiene protocols, and regularly review compliance standards. If you're unsure about how to get started or maintain compliance, platforms like FinTax24’s FSSAI solutions can guide you through the process—from registration to renewal and everything in between.