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Zepto’s Dharavi Warehouse Resumes Operations After Licence Suspension Revoked

Written by: Team Angel OneUpdated on: 16 Jun 2025, 7:53 pm IST
Zepto’s Dharavi warehouse restarts operations after the FDA revokes the suspension following compliance checks and corrective measures.
Zepto’s Dharavi Warehouse Resumes Operations After Licence Suspension Revoked
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Zepto’s warehouse in Mumbai’s Dharavi area has resumed operations after the Maharashtra Food and Drug Administration (FDA) revoked its licence suspension, as per news reports. The warehouse had been shut since late May following regulatory action over multiple food safety violations. 

The FDA cleared the facility after a reinspection and submission of a compliance report, which included an internal audit, water quality tests, and photographic evidence.

Initial Closure and Inspection 

On June 1, 2025, the FDA had cancelled the food business licence for the Dharavi facility. The inspection found expired food products stored alongside fresh ones, fungal contamination on items, and poor hygiene. The report also noted stagnant water near food items, wet and dirty floors, food articles stored directly on the floor, and cold storage temperatures not meeting the required standards.

Read more: Zepto's Dharavi Outlet Faces Suspension Over Food Safety Violations!

Appeal and Clearance Process

Zepto appealed the suspension, and the matter was heard by the appellate authority on June 13, 2025. The authority reviewed the documents, provided photographs, audit reports, and water analysis and allowed the appeal. The suspension was formally revoked, and the warehouse reopened for operations shortly after.

Warehouse Operated by Third-Party Seller

The Dharavi facility is not directly run by Zepto but by Drogheria Sellers, a third-party licensee. Zepto works on a business-to-business model with warehouse operators such as Geddit Convenience, Commodum Groceries, and Drogheria Sellers. Products are purchased by Zepto from brands and sold to these operators, who fulfil customer orders and pay Zepto a commission.

Ongoing Regulatory Scrutiny

This development follows wider checks on the quick commerce sector. A Blinkit warehouse in Pune was recently flagged for operating without a valid food licence. The Maharashtra FDA has initiated joint inspections of multiple dark stores operated by firms such as Zepto, Blinkit, and Swiggy Instamart.

Conclusion

The Dharavi warehouse is now operational after regulatory clearance. The case is part of broader regulatory oversight on hygiene and compliance standards across quick commerce supply chains.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 16, 2025, 2:23 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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