'Stop Unlicensed Outlets Operating Through Food Delivery Apps' : Restaurateur's Association Approaches Bombay High Court

The plea filed under Article 226 of the constitution seeks directions for registration of FIR against the applications and to initiate a thorough investigation. As also for all organisations who haven't procured licenses under Section 394 of the Mumbai Municipal Corporation Act, the plea seeks for them to be discontinued till they meet all the conditions and the licences.

The applications are Bundl Technologies (Swiggy), Zomato Ltd, Dunzo Digital Pvt Ltd, Thirst Crow Marketing Services, Shadowfax Technologies Pvt Ltd, Lala Move and Sefast India Pvt Ltd (WeFast).

Several such outlets sprung up during the Covid-19 pandemic, according to the petition.

"That the failure of Respondent No. 1 and other statutory authorities to take action against the said illegally operating eating houses is an abdication of its statutory responsibility under the provisions of the MMC Act and other Acts." the plea filed through advocate Aditya Chitale states.

According to the plea, the inaction of the municipal authorities against such outlets is creating an artificial distinction between two sets of similarly placed businesses. The first are the ones that operate legally by having all the requisite permissions and licences and the illegally operating eating houses, the plea adds.

"These actions are hit by Article 14 and Article 19(1)(g) of the Constitution of India. The petitioners have a fundamental right to carry on their legitimate businesses by complying with the provisions of law. It is incumbent on statutory authorities to provide a level playing field for persons who are equally situated and or comparable," according to the plea.

The petitioners state that while they have been made to spend crores towards investments in restaurants for obtaining the requisite licences, however unlicenced outlets have failed to comply with such requirements.

"Further, to rub salt in the wounds, the said illegal operating eating houses spend negligible amounts to set up and run their establishment."

It seeks permission to issue a public notice to all unlicenced restaurants, food parcel kitchens, food vendors on roads and buildings for being sued under Order 1 Rule 8 of the CPC. Further to hold health officers of each Municipal Ward accountable for strict action as per law if any eating houses are found to be operating without licence.