Nestle surges almost 6% after HC sets aside ban order

Nestle was also defending the case for misleading its customers by advertising the “no added MSG” in its packets.

“We have examined the evidence in great detail”.

In a statement following the order, the company also said it was awaiting the judgment copy.

The Food and Drugs Administration of Maharashtra had told the Bombay High Court last month that Maggi noodles manufacturer Nestle India violated laws with the lead level in the popular instant snack being above the permissible limit.

Meanwhile, in the petition, the department said, “The complaint is being filed to safeguard and protect the interest of millions of consumers who have been victims of defective, misbranded and hazardous goods/products…”

Nestle had to withdraw all varieties of Maggi noodles in June amid country-wide scrutiny for high content of monosodium glutamate (a taste enhancer) and lead in some samples.

The High Court’s ruling came one day ahead of a hearing in the country’s top consumer court on the Indian government’s claim for 99 million U.S. dollars in damages from Nestle. 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.

If the lead content is found below permissible limits by these three labs, Nestle India will be allowed to manufacture Maggi noodles, Justices V M Kanade and B P Colabawala said.

The class action suit filed by the government of India against Nestle is scheduled to be heard by the apex consumer disputes forum on Friday, the Business Standard learned.

“We are disappointed with the unprecedented step of filing of a complaint before the NCDRC against Nestle India“.

The company has been suffering from from the worst-ever crisis after food safety inspectors in Uttar Pradesh state found excess lead in some Maggi noodle samples.