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Sections 94–96 of the Food Safety and Standards Act, 2006: State rules, reward and recovery of penalty

Section 94: the State Government may, after previous publication and with the previous approval of the Food Authority, make rules, subject to the Central rules and the...

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Last updated: October 2026Verified against: Government sources

Section 94 of the Food Safety and Standards Act, 2006 lets a State Government make rules for the functions and duties the Act gives the State and its Commissioner of Food Safety. Section 95 lets the State empower the Commissioner to order a reward to a person who helps in detecting an offence or catching an offender. Section 96 says an unpaid penalty is recovered as an arrear of land revenue and the defaulter's licence is suspended until it is paid.

The three sections at a glance

SectionSubjectKey point
94(1)State rulesAfter previous publication, with Food Authority's previous approval; subject to Central rules and regulations
94(2)Matters(a) other functions of the Commissioner under s.30(2)(f); (b) reward fund and manner under s.95; (c) any other matter to be prescribed by the State
94(3)LayingBefore each House of the State Legislature, or the single House
95RewardCommissioner may be empowered to order payment to a person assisting in detection or apprehension
96Recovery of penaltyArrear of land revenue; licence suspended until payment

Section 94: State Government rules

The power

"Subject to the powers of the Central Government and the Food Authority to make rules and regulations respectively, the State Government may, after previous publication and with the previous approval of the Food Authority, by notification in the Official Gazette, make rules to carry out the functions and duties assigned to the State Government and the State Commissioner of Food Safety under this Act and the rules and regulations made thereunder."

Notice the order of authority: Central rules (section 91) and Food Authority regulations (section 92) come first, and State rules fit within them (see Central Government rule-making and regulations and laying before Parliament). A State cannot make a rule contrary to the Act.

The matters

Section 94(2) lists:

  • (a) other functions of the Commissioner of Food Safety under section 30(2)(f);
  • (b) earmarking a fund and the manner in which a reward is paid under section 95; and
  • (c) any other matter required or permitted to be prescribed by the State Government.

Laying

"Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses or where such State Legislature consists of one House, before that House." Unlike Central rules, State rules go to the State Legislature.

Because State rules differ from State to State, a food business operating in several States should check each State's notifications. A legal consultation can help you find which State rules bear on your licence and inspections.

Section 95: reward

"The State Government may empower the Commissioner of Food Safety to order payment of reward to be paid to a person who renders assistance in the detection of the offence or the apprehension of the offender, from such fund and in such manner as may be prescribed by the State Government."

Points:

  • It is enabling: the State "may" empower the Commissioner.
  • It rewards assistance in detection or apprehension, not simply a complaint.
  • The fund and the manner of payment are for the State's rules under section 94(2)(b). The Act names no amount.

Food businesses should treat this as a reminder that staff, competitors and members of the public can assist enforcement. The Act does not describe a rewards scheme beyond this section, and this article does not invent one.

Section 96: recovery of penalty

The text

"A penalty imposed under this Act, if it is not paid, shall be recovered as an arrear of land revenue and the defaulters licence shall be suspended till the penalty is paid."

Two consequences

  1. Recovery as an arrear of land revenue. The State can use its revenue recovery machinery against a defaulter, such as attachment and sale of property under the local revenue law. The Act does not spell out the steps, which follow the State's revenue laws.
  2. Licence suspension. "The defaulter's licence shall be suspended till the penalty is paid." The wording is mandatory ("shall"), and suspension lasts "till the penalty is paid", so payment ends it.

Which penalties

The section speaks of "a penalty imposed under this Act". Penalties are imposed by the Adjudicating Officer under section 68 (see adjudication of food safety cases). After the Jan Vishwas (Amendment of Provisions) Act, 2023, sections 61 and 63 are penalty provisions, each up to ten lakh rupees, so penalties under those sections fall within this recovery mechanism in the same way.

Appeal and payment

A penalty order can be appealed to the Food Safety Appellate Tribunal (see appeal against the Adjudicating Officer's order). The Act's text in section 96 does not itself say that recovery is stayed on appeal; whether any pre-deposit or stay applies is governed by the Tribunal provisions and the order in the case. Take advice before the due date rather than after a licence is suspended. Penalty and adjudication support is available through TaxClue for this stage.

Example 1. An Adjudicating Officer imposes a penalty and the operator does not pay it by the due date. Section 96 allows recovery as an arrear of land revenue, and the operator's licence is suspended until the penalty is paid.

Example 2. The operator pays the penalty in full later. The suspension under section 96 lasts "till the penalty is paid", so payment ends the ground for suspension.

For licence suspension and revocation on other grounds, see our note on suspension and revocation.

Need help with a penalty order or a suspension?

If a penalty has been imposed and you are weighing payment, appeal and the licence consequences, TaxClue can help. Start with a legal consultation.

Key takeaways

  • State rules under section 94 need previous publication and the Food Authority's previous approval, and are laid before the State Legislature.
  • Section 95 allows a State to empower the Commissioner to order a reward for help in detection or apprehension; the fund and manner are set by the State.
  • Section 96: unpaid penalty is recovered as an arrear of land revenue.
  • The defaulter's licence is suspended until the penalty is paid.
  • Check State notifications and do not let a due date pass without taking advice.

Read next

Disclaimer: Based on the Food Safety and Standards Act, 2006 as enacted, read with the Jan Vishwas (Amendment of Provisions) Act, 2023 where it applies (ss.59, 61 and 63 only; ss.94 to 96 are unchanged). Verify current notifications, regulations and FSSAI orders before acting.

Quick recapKey facts & short answers

Key Facts About Sections 94

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who approves State rules under the FSS Act?

The Food Authority gives previous approval, after previous publication, under section 94(1).

Where are State rules laid?

Before each House of the State Legislature, or before the single House.

Keep your documents in an order a stranger could follow — one day an officer or auditor will have to.

— TaxClue Compliance Desk

Sections 94: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The Food Authority gives previous approval, after previous publication, under section 94(1).

Before each House of the State Legislature, or before the single House.

The Act names none. The fund and manner are to be prescribed by the State Government.

It is recovered as an arrear of land revenue and your licence is suspended until the penalty is paid.

Section 96 says the suspension lasts "till the penalty is paid".

Yes, in the sense that they are penalties imposed under the Act after the Jan Vishwas Act, 2023.