HC refuses to quash 14-yr-old adulteration case against Hindustan Coca-Cola

Criminal proceedings concerning 2001 allegations of adulterated beverages to move forward

The Bombay High Court has ruled against Hindustan Coca-Cola Beverages Private Limited (HCCB), allowing criminal proceedings related to allegations of selling adulterated beverages to proceed.

 

Background of the case

The case dates back to a 2001 inspection by the Food and Drug Administration (FDA) in Jalna district, Maharashtra. The FDA claimed to have found fibrous material and cobwebs inside sealed bottles of Canada Dry, a sweetened carbonated drink.

 

The administration seized 321 bottles of the drink, which were marked with an expiry date of December 12, 2001. Following tests, the FDA filed a complaint against HCCB under the Prevention of Food Adulteration Act, a law aimed at maintaining food safety standards in India.

 

In 2010, a magistrate’s court in Jalna issued a notice to the company. HCCB sought to have the complaint quashed, citing procedural delays.

 

High Court ruling

On Wednesday, Justice Y G Khobragade of the Aurangabad bench dismissed the company’s plea to terminate the case, citing insufficient grounds for quashing the complaint. The court also refused to extend an interim stay on the proceedings, which had stalled the case for over 14 years.

 

With this ruling, the trial is set to resume, bringing renewed attention to the two-decade-old allegations.

 

Jubilant Bhartia stake acquisition

This legal development coincides with major changes in HCCB’s ownership. The Jubilant Bhartia Group, a prominent business conglomerate, recently announced its acquisition of a 40 per cent stake in HCCB for Rs 12,500 crore, valuing the company at Rs 31,250 crore.

 

Shyam S Bhartia, founder and chairman, and Hari S Bhartia, co-chairman of Jubilant Bhartia, described the acquisition as a strategic investment, expressing optimism about India’s food and beverage sector’s growth potential. 

 

Operational restructuring

Earlier this year, HCCB restructured its operations by transferring its bottling business in northern, eastern, and northeastern regions to franchise partners, including Moon Beverages, SLMG Beverages, and Kandhari Global Beverages.

 

The company continues to directly operate 13 factories across southern and western India, distributing its products to 2,300 partners and 2.3 million retailers.

 

HCCB’s portfolio includes popular beverages such as Coca-Cola, Thums Up, Sprite, Limca, Maaza, Minute Maid, Kinley, Dasani, and Schweppes.

 

Moving forward

While HCCB positions itself for expansion under new ownership, the company faces renewed scrutiny over the long-pending allegations of product adulteration. The resumption of the trial could have implications for its reputation and ongoing operations.

 

(With agency inputs)