A good news indeed for the Maggi lovers and the Shareholders of the Nestle india as the ban on Maggi has been lifted after the Bombay high court rules out an order in favour of Nestle india.
But there is a condition that Bombay HC has laid that fresh test to be conducted in Delhi, mohali and jaipur labs to put back the instant noodles on sale. Nestle India lawyer said that the court has given them six week time for conducting fresh tests.
The court was hearing the case for over few days with Nestle india denying the allegation by the FSSAI that the product has excessive lead content.
On june 5 the FSSAI ( Food Safety and Standards Authority of India) ordered Nestle india to withdraw the products from the market shelves terming it as “unsafe and hazardous” for human consumption. The Bombay HC also said that the regulator FSSAI have to justify it’s ban on popular snack.
The damage that the Company faced is very huge because a brand is destroyed without any substantial proof justifying the ban on maggi. Legal experts said about a month ago that Nestle India got huge blow in this ban and can file a claim between 10,000 to 20,000 crore as damage done by the government.
in the recent Q1 reports for the first time in two decades the company faced a loss in its financial book after the ban of 64.4 crore for the Quarter ended june 30 as compared to last year profit of 287.86 crores. Net sales fell 20.1% to Rs.1,933.8 crore. The firm withdrew about 30,000 tonnes of Maggi from the market, reversing sales worth Rs.288.4 crore in the June quarter.
The Share price jumped about 2.5% after the Bomaby HC ruling.
Modi government promised a favorable environment for businessmen to do their business but the reverse has just happened. Our eyes are on the amount of lawsuit that would be charged against government by the Swiss food maker.