Nestle shares dipped nearly 10% on Wednesday morning after the Central Government of India declares that Maggi Noodles are unsafe as they contain high content of lead and mono-sodium glutamate or MSG, a taste enhancer.
The Delhi government clarifies that out of 13 packs it tested, 10 packs are found to be unsafe with high lead content. The Government has sent summons to the higher officials of Nestle India and decided to file a case against Nestle "for sale of an unsafe product" and is also considering a fine for "misbranding," as it found five samples with MSG, without a declaration on the label.
While the Delhi BJP unit chief Satish Upadhyay demanded that Maggi be immediately recalled from Delhi markets, the state Health Minister Satyendra Kumar Jain said, "The government will initiate action and will follow the legal course. Adulteration of any kind in food will not be tolerated."
Many other states including Himachal Pradesh, Punjab, Haryana, Bihar, Maharashtra, and Gujarat are now about to test Maggi. On the other hand, Kerala has ordered a pullout of Maggi noodles from about 1300 government-run outlets, until the junk food is proved to be safe.
However, Goa's Food and Drugs Administration (FDA) confirms that the Maggi noodles samples it tested were found to negative for MSG and lead content and thus safe for human consumption.