The Shahjahanpur Administration in Uttar Pradesh has imposed a fine of ₹45 lakh on Nestle India after it found samples of Maggi Noodles to be sub-standard. The samples were collected by the administration in 2015.
However, Nestle India said that Maggi Noodles are safe for consumption and it appeared to be a case of application of incorrect standards and that it will be filing an appeal urgently once it receives the order.
Jitendra Kumar Sharma, Additional District Magistrate (E) of Shahjahanpur told BusinessLine that a fine of ₹17 lakh has been imposed on six distributors and a fine of ₹45 lakh has been imposed on Nestle India.
When contacted, a Nestle India spokesperson said, “We strongly reiterate that MAGGI Noodles are 100 per cent safe for consumption. While we have not received the orders passed by the adjudication officer, we have been informed that the samples are of year 2015 and the issue pertains to ‘ash content’ in Noodles.”
“This appears to be a case of application of incorrect standards, and we will file an appeal urgently once we receive the order. In 2015, Nestlé India and other companies had represented to the relevant authorities, via industry associations, to set standards specific to instant noodles to avoid confusion amongst enforcement officers and consumers. The standards have since been introduced and the product complies with these standards. We regret the confusion it may cause to consumers,” the company added in its statement.
On Wednesday, Nestle shares fell over 1% in the first few minutes of trade before making a recovery. At about 9.30 am, the Nestle shares were trading 0.17 per cent or ₹12.95 higher at ₹7,509.40. The stock hit a low of ₹7,405.15 in initial trade.