Nov 30, 2017

Nestle in soup over high ash content in Maggi

The Uttar Pradesh government has slapped a fine of Rs 45 lakh on Nestle India after its instant noodle brand Maggi failed lab tests which the company disputed saying it is a case of application of incorrect standards. The investor community ignored the latest controversy surrounding Nestle India as its shares ended the day with a gain of more than Rs 5 a share at Rs 7,501.65 on BSE.
In June 2015 Maggi was banned by food safety regulator FSSAI for six months for allegedly containing lead and monosodium glutamate beyond permissible limits. Nestle India had to recall 38,000 tonnes of the noodles from the market. The MSG is used as a flavour enhancer. In 2015, Nestle India and other companies had represented to the Food Safety and Standards Authority of India to set standards specific to instant noodles to avoid confusion among enforcement officers and consumers.
According to a PTI report, the district administration of Shahjahanpur has imposed a fine of Rs 45 lakh on Nestle while another Rs 15 lakh has been slapped on three distributors and Rs 11 lakh on two sellers of Maggi. District authorities had collected the samples last year in November and sent them for lab test. Now, it has been alleged that the sample had ash content above the permissible limits for human consumption. Nestle India said it would file an appeal on receiving the order.
“We strongly reiterate that Maggi noodles are 100 per cent safe for consumption. We have not received the orders passed by the adjudication officer. This appears to be a case of application of incorrect standards, and we will file an appeal urgently once we receive the order,” said a company spokesman.
“We regret the confusion it may cause to consumers,” the Nestle spokesman said.

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