Vimal Elaichi case: Why Delhi court rejected plea over SRK, Ajay Devgn, Tiger Shroff
Vimal Elaichi firm told to move Maharashtra court over FDA notices to brand stars
The Delhi High Court on Monday rejected a petition by the makers of Vimal Elaichi seeking to quash show-cause notices issued by the Maharashtra Food and Drug Administration (FDA) to brand ambassadors Shah Rukh Khan, Ajay Devgn and Tiger Shroff over alleged surrogate promotion in advertisements.
PTI reported that Justice Swarana Kanta Sharma held that the Delhi High Court lacked territorial jurisdiction to hear the case.
The court said the company could approach the courts in Maharashtra, which would be the more appropriate and convenient forum under the doctrine of forum conveniens.
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Why did the Vimal Elaichi makers approach the Delhi HC?
PB Agro LLP, which markets cardamom under the Vimal brand, said in its petition that it engages well-known film actors to promote its product.
The company said its endorsement agreements with the actors require advertising campaigns to comply with applicable laws and that it has taken steps to ensure the campaigns meet regulatory requirements.
PB Agro challenged an August 11 notice issued by the Maharashtra FDA, arguing that the notice was directed at the actors rather than the company, even though the company could face serious consequences from any regulatory action.
What is the Maharashtra FDA’s allegation?
The Maharashtra FDA has alleged that advertisements for Vimal Elaichi amount to surrogate promotion of Vimal Pan Masala, a product banned in Maharashtra.
The regulator said the Vimal brand is “prominently associated with Pan Masala in the market” and questioned whether the elaichi product was being promoted independently or as a way of indirectly advertising tobacco-related products.
What did the FDA ask the actors to do?
The FDA directed Shah Rukh Khan, Ajay Devgn and Tiger Shroff to provide documents showing that Vimal Elaichi is a separate product from the banned pan masala products.
The actors were also asked to:
Stop participating in the advertisements with immediate effect.
Remove promotional material from their official social media accounts and other platforms.
Explain what due diligence they carried out before agreeing to endorse the product.
Submit their endorsement agreements and campaign briefs.
Provide other relevant records related to the advertising campaign.
What happens next?
The Delhi High Court’s ruling does not decide whether the FDA’s allegations against the Vimal Elaichi advertising campaign are valid.
Instead, the court held that Maharashtra is the appropriate jurisdiction for the company to challenge the notices. The regulatory dispute can therefore be pursued before the appropriate court in Maharashtra.
