The Bombay High Court has reserved its judgement in Nestle's case against the Food Safety and Standards Authority of India (FSSAI) concerning the watchdog's handing of the recent Maggi recall.
The FSSAI and a number of state food safety authorities in India claim to have detected levels of lead in Maggi noodles in excess of those allowed under Indian regulations. Food safety regulators also suggested that the ingredient MSG was found when packaging stated that no MSG had been added.
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Nestle has insisted the FSSAI's response to concerns over Maggi noodles – in particular the testing methodology that detected alleged elevated levels of lead – was flawed. Nestle has repeatedly insisted its Maggi noodles are "safe", containing levels of lead within regulatory standards. The company also stressed it does not add MSG to Maggi noodles manufactured in India.
According to local reports, having heard arguments from both sides the High Court decided to reserve its judgement pending further testing of Maggi product.
A spokesperson for Nestle confirmed: "The arguments before the Hon’ble High Court have concluded and the judgement is reserved."
Nestle estimates stock and related materials worth around INR3.2bn (US$49.9m) have been destroyed. The company also swung to a loss in the second-quarter in India. For the three months to the end of June Nestle's Indian unit made a net loss of INR644m, compared with a INR2.88bn profit a year earlier. Sales fell 20% to INR19.34bn in the wake of the Maggi scare.
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By GlobalData
