In a statement, Mohit Khattar, president (marketing) of Subhiksha Trading Services, said, "It is quite sad that agencies saddled with the task of consumer protection can be used as tools by competition and vested interests to settle scores."

When contacted, FDA sources said its actions were determined by public interest and no company was being targeted.

Top officials of Subhiksha said that the company's lowest price strategy and 10 per cent discount offer on all medicines have been a subject of boycotts and harassment for the retailer.

Various regulatory agencies have repeatedly attempted to discredit the retail chain to make it appear that lower prices were linked to lower quality. In defence, the 12-year-old company has pointed out that 80 per cent of the products sold in its stores were national brands sourced directly from big companies. 

Subhiksha found itself embroiled in a controversy when the state legislative assembly last month ordered FDA to enquire into the matter seeking a report within 10 days. But the FDA went ahead and brought forward the hearing to August 2.

Subhiksha was issued a notice about the hearing only on August 1.