Here's why you may not see Maggi on your plates any time soon
While there's reason for Nestle India and ardent Maggi lovers to cheer, there's still sometime before the two-minute noodles will be on your plates.
The Bombay High Court today lifted the ban on Maggi noodles, bringing much-needed respite to Nestle India, whose financials tanked in the second quarter after its flagship product was taken off the shelves. Nestle India reported a net loss of Rs 64.40 crore versus a profit of Rs 287.86 crore in the previous financial year.
There's definitely a reason to cheer for Nestle India and for ardent Maggi lovers, but there's still sometime before the two-minute noodles will be on your plates again.
Here's what the Bombay High Court said in its Maggi verdict today:
-- The Bombay HC quashed orders of food regulators – Food Safety Standards Authority of India (FFSAI) and Maharashtra's Food and Drugs Department (FDA) -- banning Maggi noodles for six weeks. It refused to grant stay on its own order on a plea.
-- Principles of natural justice were not followed because the company wasn't given a hearing.
-- In the six weeks that the ban has been lifted, Nestle India will be allowed to send five samples of each variant of noodles for fresh testing to three labs in Punjab, Hyderabad and Jaipur.
-- Laboratories where the tests were performed before, were not authorised.
-- The authorised test labs have to be accredited with National Accreditation Board for Testing and Calibration Laboratories (NABL).
-- These samples will be drawn out of the 750 pieces still stored by the company following the ban.
-- Nestle India still has to hold off production of the noodles till the test results arrive. If lead content is found to be below permissible limit by the three labs, Nestle will be allowed to manufacture Maggi noodles.
After the verdict, shares of Nestle India surged nearly 6% today.The stock jumped 5.82% to Rs 6,545 on BSE. On NSE, it rose 4.79% to Rs 6,533. Nestle's stock had fallen on Wednesday after the government filed a class action suit against the company seeking over Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements. (With agencies)