Shares of Nestlé India dropped over 3% after Food Safety and Standards Authority of India (FSSAI) issued notice to the company flagging concerns over its product, Maggi noodles.
Nestlé share price fell 3.26% to Rs 1,376 apiece. The scrip was trading 3.05% lower by 2:45 pm, while the benchmark Nifty 50 index was 1.76% up.
The company received the notice over allegations that insects or larvae were found inside a packet of Maggi noodles. FSSAI has sought a detailed Action Taken Report (ATR), including vendor details, internal quality-check logs for the batch in question, corrective measures taken to remove affected products from the supply chain, and steps being implemented to prevent a recurrence.
The food regulator took cognisance of complaints circulating on social media and issued notices to Nestle India for Maggi, KFC, Flipkart and food brand Open Secret over quality concerns.
Companies and food business operators have been asked to submit detailed responses and supporting documentation before any further action is considered.
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Notice has been issued to a KFC outlet located at MVR Mall in Eluru, Andhra Pradesh on allegations that the restaurant was operating in unhygienic conditions. FSSAI has sought details of deficiencies related to hygiene, sanitation, food handling, storage, waste management, pest control and employee hygiene, and documentary evidence of corrective and preventive measures.
Devyani International, KFC's operator said that they "will conduct an investigation in respect of allegations in the notice and make our representation to FSSAI." Meanwhile, Sapphire Foods has said the store in question belongs to Devyani.
Meanwhile, Open Secret received FSSAI notice on its “Un-junked Dates” product for allegedly containing insects. The product was delivered via Flipkart Minutes. The regulator has sought internal quality-control records, details of corrective actions taken to remove the product from the supply chain and measures aimed at preventing similar incidents.
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