HC refuses relief to Nestle

FSSAI, Maharashtra govt and state FDA asked to file replies, next hearing on June 30

The high court (HC) here has refused to grant interim relief to Nestlé India in the Maggi recall case. The court directed the Food Safety and Standards Authority of India (FSSAI), Food and Drug Administration (FDA) in Maharashtra, and the state government to file replies to the company's petition in two weeks. The next hearing is on June 30.

Nestlé India had moved court on Thursday against the Indian food regulator and the Maharashtra body. The Indian subsidiary of the Swiss food major had sought a stay on the order to recall its Maggi noodles from outlets across India, as well as to stop its production.

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The company is fighting for "natural justice", terming the move by FSSAI "arbitrary" and "illegal". Senior counsel Iqbal Chagla, representing the company, said all packets, around 350 million, are being withdrawn. However, FSSAI counsel Mehmood Pracha said they were still available with retailers and the company needed to do more.

Additional solicitor-general Anil Singh, appearing on behalf of the state and the state FDA, justified the ban on Maggi and other products. Chagla argued the FSSAI chief's ban order was done in an “emergent, drastic and arbitrary” fashion. “The order was passed without giving any notice. How can an order be passed, then a show-cause notice be issued?” FSSAI had ordered Nestlé India to withdraw all variants of Maggi, terming these “unsafe and hazardous” for human consumption. Nestlé was given 15 days to reply to a notice asking why approval should not be withdrawn.

Nestlé's petition has strongly contested the order, saying there is no question of a health risk or violation of law. “The company," it declared, "disputes the result of an analysis relating to the finding of lead in excess of 2.5 ppm (parts per million) in the taste maker.”

It said the order to test the tastemaker separately was "erroneous and liable to be set aside", and denied any "health risk or misbranding or violation of packaging and labelling regulations”, as alleged in the FSSAI order.

FSSAI has cited three major violations including excessive presence of lead beyond the maximum permissible level of 2.5 ppm. It alleged misleading labelling information on the package reading No Added MSG' (monosodium glutamate), and release of a non-standardised food product in the market — Maggi Oats Masala Noodles with Tastemaker — without risk assessment and grant of approval.

Nestlé said the sample tested by the food authority had passed its expiry date. Maggi tastemaker was not a standardised product, Nestle said, and cannot have any defined tolerance limit for lead. The company said all of the tastemaker’s ingredients are specified and regulated, under the Food Safety and Standards Act, 2011. A judge also asked the FSSAI counsel why it wanted to prosecute brand ambassadors. The counsel said under section 24 of the 2011 law, these people were the biggest culprits. Nestlé India had spent Rs 1.19 crore on tests and Rs 395 crore for promotion in 2014.

WAR OF WORDS

Nestlé says:

• Withdrawing all packets from stores across India, around 350 million
   
• Fighting for natural justice, firm questions how a ban can precede a showcause notice
   
• Asks why regulator wanted to prosecute brand ambassadors
   
• Denies health risk, misbranding or violation of labelling regulations

FSSAi says:

• Packs still available with retailers and the company needs to do more
   
• Nestle has been given 15 days to reply to a showcause notice
   
• Action on brand ambassadors under Sec 24 of Food Safety and Standards Act, 2011
   
• Nestle spent Rs 1.19 cr on tests & Rs 395 cr for promotions in 2014