Swiggy Instamart Plummets as FSSAI Issues 9 Notices Over Rotten, Expired Food Products

Swiggy Instamart Plummets as FSSAI Issues 9 Notices Over Rotten, Expired Food Products​

Swiggy Instamart witnessed a sharp decline following the Food Safety Standards Authority of India (FSSAI) issuing nine notices to the quick-commerce platform. The regulatory action was triggered by multiple severe consumer complaints alleging the supply of rotten, expired, and contaminated food products through the service. At 10:44 am on July 13, Swiggy shares were trading 1.2% lower, hitting Rs 269.88 apiece.

The FSSAI’s notices mandate that the platform submit a detailed explanation and compliance report. Failure to comply will lead to the initiation of appropriate legal action by the authorities. The regulator emphasized that these actions are based on both suo moto cognizance and consumer complaints regarding food safety lapses.

Regulatory Crackdown Targets Food Safety Violations​

The FSSAI social media announcement confirmed that the multiple complaints alleged systemic violations under the FSS Act 2006. Consumers had reported receiving expired, spoiled, rotten, contaminated, or otherwise unsafe items from Swiggy Instamart. The regulatory body stressed that these notices raise serious concerns regarding seller onboarding processes and food quality monitoring adequacy.

In addition to the safety issues, the regulator highlighted breaches in compliance documentation. Some complaints alleged that Food Business Entities (FBEs) were listed under names different from those reflected against their FSSAI Registration. This points to deep concerns over traceability and verification within the platform’s supply chain.

Specific Allegations of Rotten and Expired Products​

The details provided by the regulator paint a concerning picture regarding product integrity on Instamart. Consumers reported receiving 'Healthify 100% Whey Protein 1 kg' and 'Noice Homestyle Madras Mixture with Peanuts,' both allegedly supplied after their expiry dates. Similarly, products like 'Akshayakalpa Organic Egg' were reportedly found rotten and emitting a foul odour, alongside signs of contamination.

The investigation also noted complaints concerning the delivery of contaminated eggs and milk through Instamart. An infant food formulation was specifically cited as being in a highly deteriorated and unsafe condition, showing clear signs of improper storage and handling. The FSSAI added that this dangerous product had allegedly been re-supplied even after it was returned.

Market Reaction and Platform Response​

The news of the regulatory action immediately impacted investor sentiment toward the platform. Instamart’s spokesperson acknowledged the issues in a statement, confirming they are actively reviewing the flagged listings. The company assured stakeholders that it is in touch with the authorities to resolve the safety compliance matters raised by the FSSAI.

The notices reflect an escalating trend of regulatory oversight towards quick-commerce and food operators. FSSAI has been increasingly active, posting about its actions against e-commerce companies for misleading claims and labeling violations across the sector.

Broader Sector Scrutiny Amid Safety Concerns​

The FSSAI’s scrutiny is not isolated to Swiggy Instamart. The regulator has recently issued notices to multiple entities in a campaign of enforcing compliance standards. This includes several quick-commerce players and food brands. Blinkit, for example, was sent a notice by the FSSAI following consumer complaints regarding the sale of poor-quality eggs on its platform.

Other enforcement actions include issuing notices to Lotte India, Ferns N Petals, and Kubera Foods over misleading claims in their products. The regulator also issued warnings to six beverage brands—including Red Bull Energy Drink, Pepsico's Adrenaline Rush Energy Drink, Sting Energy Drink, Hell Energy, and Coca-Cola-backed Monster Energy—for misbranding and misleading claims.