The district consumer forum ruled against the manufacturer and the Sainikpuri retailer after complainant Sandya Chavula discovered mold inside an organic butter pack she bought in January 2025. Although the item had months left before its April 2025 expiration date, the store's open chiller failed to sustain temperatures below the required four degrees Celsius. To penalize these lapses, the commission mandated a full purchase refund, direct consumer compensation, legal expense coverage, and substantial punitive damages for consumer welfare.
Key points
Retailers bear direct liability when failing to maintain the recommended below-four-degre…: Retailers bear direct liability when failing to maintain the recommended below-four-degrees temperature necessary for dairy preservation.
Manufacturers remain jointly responsible for inspecting retail storage conditions rather…: Manufacturers remain jointly responsible for inspecting retail storage conditions rather than selling perishables to ill-equipped outlets.
Regulatory enforcement escalates as the Hyderabad consumer forum officially transferred t…: Regulatory enforcement escalates as the Hyderabad consumer forum officially transferred the contamination complaint to the FSSAI.
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NEW DELHI: A district consumer commission in Hyderabad has held a butter manufacturer and retailer guilty of deficiency in service and unfair trade practice after a woman found fungus and other visible contamination in a packet of organic cooking butter she had purchased from a retail outlet. The commission found that improper storage conditions had led to contamination of the product.
The commission, in its October 9, 2026, order, directed the retailer and manufacturer to jointly refund Rs 230, pay Rs 1 lakh as compensation and Rs 10,000 towards litigation costs. It also imposed Rs 1 lakh as punitive damages, to be deposited in the consumer welfare fund, and referred the matter to the Food Safety and Standards Authority of India (
FSSAI) for necessary action.
Fungus found in organic butter pack
According to the commission order, the complainant, Sandya Chavula, purchased a packet of Akshaya Kalpa Organic Cooking Butter for Rs 230 from a retail outlet in Sainikpuri, Secunderabad, on January 28, 2025. The product had been manufactured on December 21, 2024, and was due to expire on April…
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