HC lifts ban on Maggi conditionally, orders fresh tests

Mumbai, August 13

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The Bombay High Court conditionally lifted the nationwide ban on Nestle India’s popular instant noodles Maggi, two months after Indian food regulators ordered the company to take the product off shelves. However, the court also ordered tests on the product by three independent laboratories.

A division bench of Justices VM Kanade and BP Colabawalla set aside Food Safety Standards Authority of India (FSSAI) order issued on June 5 and also quashed of Maharashtra's Food and Drugs Administration’s (FDA) order banning production and sale of the popular snack banning production and sale of the product.

Both orders had claimed that the lead content in the product was beyond permissible limit and called it “hazardous for consumption”.

In its verdict, the court ruled that the company was not given a fair hearing. It also said the labs which tested the product were not affiliated to the National Accreditation Board for Testing and Calibration Laboratories (NABL) and could not conduct tests.

The judges ordered Nestle India to send five samples of each of variant of its product to three accredited labs in Punjab, Hyderabad and Jaipur.

The laboratories have been given six weeks’ time to submit their reports.

The court, however, forbade the Indian arm of the Swiss conglomerate from manufacturing or selling the product until they laboratories submitted their reports.

On June 5, FSSAI banned nine variants of Maggi claiming that the lead content was beyond permissible limits. The regulator also accused Nestle of flouting labelling regulations on taste enhancer 'MSG' and ordered the company to submit a compliance report.

A few days later, Maharashtra's FDA also banned the product in the state.

Nestle India then moved court against these orders.

Will comply with court order to conduct tests afresh: Nestle

Nestle India welcomed the judgement on Thursday and said it would conduct tests afresh.

"Nestle India respects the decision made on August 13 by the Honourable Bombay High Court to revoke the ban order passed by the Food Safety and Standards Authority of India (FSSAI) and FDA, Maharashtra, on Maggi noodles and will comply with the order to undertake fresh tests," the company said in a statement.

In a BSE filing, Nestle India said: "Manufacture and sale of Maggi noodles is subject to certain conditions, which will be informed after the judgment is received.  We await copy of the judgment. It is Nestle India's endeavour to get Maggi noodles back on the shelves as soon as possible for the benefit of consumers."

Ban on Maggi had hit Nestle India's earnings hard: the company reported a standalone loss of Rs 64.40 crore for the June quarter — its first quarterly loss in over three decades. It had posted a net profit of Rs 287.86 crore in April-June of 2014-15.

Nestle shares end nearly 3% up as HC quashes Maggi ban

Shares of Nestle India ended nearly 3 per cent higher on Thursday after Bombay High Court lifted the ban on Maggi.

The stock ended the day with a gain of 2.78 per cent at Rs 6,356.70 on the BSE. During the day, it surged 5.82 per cent to Rs 6,545.

At the NSE, shares of the company settled at Rs 6,317.25, up 1.33 per cent from its previous close.

Following the gain in the stock, the company's market valuation rose by Rs 1,658.35 crore to Rs 61,288.58 crore.— PTI