New Delhi, Aug. 5 -- A few days before India's apex food safety regulator issued a prohibition order against Dabur India Ltd late Monday, Diageo-owned United Spirits Ltd moved court against an earlier order restricting the sale of one of its rum products.

Last week, in another sign of growing friction between the food industry and regulators, three associations representing restaurants and hotels across India issued statements insisting that the Maharashtra Food and Drug Administration's (FDA) recent spate of restaurant shutdowns in Mumbai was hurting business.

Restaurants, hotels and food brands are coming under greater regulatory scrutiny as food safety authorities become increasingly assertive, responding in part to public outcry ove...