Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Indian court slaps Nestle India with fine over substandard noodles

Published 29/11/2017, 09:41
© Reuters. FILE PHOTO: The Nestle logo is pictured on the company headquarters entrance building in Vevey
NESN
-
NEST
-

NEW DELHI (Reuters) - An Indian court on Tuesday imposed a fine of 4.5 million rupees ($70,000) on Nestle India (NS:NEST) in a 2015 case for selling substandard instant noodles after a laboratory test found high ash content in its popular Maggi brand.

The court also slapped a 2.6 million rupee fine on the distributors of Nestle India, a unit of packaged food giant Nestle SA (S:NESN), said Ranjan Singh, a legal officer at the Shahjahanpur district court in the northern state of Uttar Pradesh on Wednesday.

The case against the Swiss food firm's India unit is one of several filed by regulators after they found excess lead, ash, and monosodium glutamate (MSG), a flavour enhancer, in different samples of Maggi noodles seized in Uttar Pradesh between 2015 and 2016.

A spokesman for Nestle India said the company will appeal against the order.

"This appears to be a case of application of incorrect standards, and we will file an appeal urgently once we receive the order," said the spokesman, who did not wish to be named citing company policy.

Maggi, Nestle India's single-largest revenue earner, was banned in June 2015 for six months across India on allegations that it contained chemicals beyond prescribed limits.

© Reuters. FILE PHOTO: The Nestle logo is pictured on the company headquarters entrance building in Vevey

The company had to recall 38,000 tonnes of Maggi noodles from millions of retail shelves and destroy them. The ban was relaxed in November 2015.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.