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Nestle India feels heat over Maggi row, stock crashes over 10 per cent

Nestle India feels heat over Maggi row, stock crashes over 10 per cent

Samples of Maggi noodles taken in the national capital were found "unsafe" for consumption during tests by the Delhi government, which decided to initiate a case against Nestle India.

State-owned retail outlets in Kerala were asked to withdraw these products, and Karnataka and Haryana ordered random lifting of samples for scrutiny. (Photo: Reuters) State-owned retail outlets in Kerala were asked to withdraw these products, and Karnataka and Haryana ordered random lifting of samples for scrutiny. (Photo: Reuters)

Shares of Nestle India slumped over 10 per cent on Wednesday amid growing concerns about safety standards of its popular Maggi noodles.

Samples of Maggi noodles taken in the national capital were found "unsafe" for consumption during tests by the Delhi government, which decided to initiate a case against Nestle India.

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The stock plunged 10.10 per cent to Rs 6,119.40 on Bombay Stock Exchange (BSE).

On National Stock Exchange (NSE), it fell sharply by 10.2 per cent to Rs 6,109.

A Bihar court on Tuesday ordered an FIR against Maggi brand ambassadors Amitabh Bachchan, Madhuri Dixit and Preity Zinta even as Nestle India faced trouble in more states.

It said officials of Nestle will be summoned in the next few days and more action may follow, including a possible ban on the famous '2-minute' instant noodle, after the final lab test report is received.

State-owned retail outlets in Kerala were asked to withdraw these products, and Karnataka and Haryana ordered random lifting of samples for scrutiny.

The Union Health Ministry said it will look into the matter, taking note of various reports suggesting that the samples of Maggi contained higher-than-permissible levels of lead and monosodium glutamate.

Meanwhile, BSE has sought clarification from Nestle India with reference to reports that the Maggi samples failed safety test in Delhi.

At 1:39 pm, shares of the company were trading at Rs 6202 apiece, down by 8.89 per cent on BSE.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jun 03, 2015, 1:38 PM IST
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