The Curry Special factory in Ilford, Essex may be handed an anti-social behaviour order (ASBO) after locals complained about smell and noise.
Last month locals staged an angry protest outside the factory, which prepares food for Indian restaurants.
Redbridge council's public protection officers had not observed any noise during 19 unannounced visits since January, but had found "strong cooking odours", said councillor James Leal. Initially, the council will use the Environmental Protection Act, which carries heavy fines, but "we will explore all the legal routes available to us, which may include an ASBO", said Leal.
Curry Special owner Paul Luther said that the problems was being resolved by the fitting of carbon filters and a grille to replace a noisy automatic fan.