The Food Safety and Standards Authority of India (FSSAI) on Friday, 3 October 2025, directed immediate action against the sale of a Nestle dairy product after a laboratory analysis declared a sample of Nestle Low Fat Dairy Whitener — collected from the premises of Bharat Hotels Ltd (The Lalit) in New Delhi — as both unsafe and substandard. The food regulator confirmed the development in a statement posted on social media platform X on Saturday.

What the Lab Report Found

The sample was drawn from The Lalit hotel and subsequently analysed by a Food Analyst laboratory. The laboratory report concluded that the product did not comply with the provisions of the Food Safety and Standards (FSS) Act, 2006, and classified the sample under two distinct categories of non-compliance: unsafe and substandard.

A copy of the laboratory analysis report has been shared with the food business operator (FBO) for necessary action, the regulator said.

Notice Issued, Sale Banned Pending Appeal

Following the findings, FSSAI issued a formal notice to Bharat Hotels Ltd (The Lalit) regarding the non-compliant product, which was manufactured by Nestle. The regulator has directed the hotel operator to immediately prohibit the sale of the identified product, pending any further legal proceedings.

Notably, the hotel operator has been granted an opportunity to challenge the findings and file an appeal against the Food Analyst's report within the prescribed period under the provisions of food safety law — a standard procedural safeguard under the FSS Act.

Broader Regulatory Crackdown

This action forms part of a broader enforcement push by FSSAI, which has been intensifying scrutiny of food quality and compliance standards across the country. Earlier in the same month, the regulator suspended the licences of TCF Chocolates and Gifts and Shivam Agro after inspections uncovered serious food safety and hygiene lapses at their facilities.

The action against TCF Chocolates and Gifts was triggered by a consumer complaint related to food ordered through an e-commerce platform, which prompted a formal inspection of the operator's premises.

What This Means for Consumers and Operators

The case underlines the regulatory exposure that hospitality businesses face when sourcing packaged food products — even from established national brands. Under the FSS Act, liability can extend to the food business operator stocking or serving a non-compliant product, irrespective of who manufactured it.

With FSSAI maintaining an active enforcement calendar, food operators across hotels, restaurants, and e-commerce channels are likely to face continued surveillance. The regulator's next steps — including whether further penalties will follow or whether the appeal process will alter the classification — are expected to be closely watched by the hospitality and food processing industries.