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Nestle surges almost 6% after HC sets aside ban order

Accordingly, Nestle India, the Indian unit of the Swiss company, had destroyed several thousand Maggi noodles packets by burning them, though the high court had permitted export of this product despite a ban on its sale in India.

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Holding that tests must be completed within six weeks, the Court told Nestle India that if test reports suggest that lead is within permissible limit then it can start the sale of products.

Shares in Nestle India rose almost four percent after the ruling, which came a day after India said it was seeking damages of almost US$100 million from the company for “unfair trade practices”.

“Supreme Court option is neither ruled in nor ruled out”, he said.

The Court made it clear that it was ordering a fresh test of Maggi samples as it had kept the prime interests of the consumers in its mind and also because it wanted the issue to be resolved amicably. In June, India’s Health Ministry ordered removal of Nestle noodles from stores across the country.

Meanwhile, Maggi manufacturer Nestle continues to maintain that tests and the decision to ban Maggi was arbitrary. The court further cited that the samples were not tested at authorized laboratories that are accredited by National Accreditation Board for Testing and Calibration Laboratories (NABL), which raises doubts on the results.

In a statement following the order, the company also said it was awaiting the judgment copy. “It is Nestle India’s endeavour to get Maggi noodles back on the shelves as soon as possible for the benefit of our consumers”.

He moreover stated that the FSSAI and FDA had not followed the principles of natural justice and should have offered with a hearing before banning the product on excess lead count. “FSSAI should have adhered to principles of natural justice and served a notice to Nestle [if it found harmful ingredients above permissible limits”, he said.

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It had been selling the brand for over three decades in India, and had 8% of the country’s instant noodle market before the ban.

Bombay HC asks FSSAI to justify Maggi ban orders fresh test