Shares of Nestle Indian surged nearly 6 per cent intraday after Bombay High Court quashed FSSAI order banning Maggi noodles. The scrip closed 2.78 per cent higher at Rs 6,356.70.
Bombay High Court on Thursday quashed orders of food regulators banning Maggi noodles. The High Court allowed Nestle to send five samples of each variant of noodles for fresh testing to three accredited labs in Punjab, Hyderabad and Jaipur.
The court said that if lead content is found below permissible limit by the three labs, Nestle will be allowed to manufacture Maggi noodles.
It observed that principles of natural justice were not followed because the manufacturer was not given a hearing and the laboratories where tests were performed to determine lead content were not authorised.
Earlier, Nestle had to withdraw its popular instant noodles Maggi from the market over allegations of high lead content and presence of MSG (monosodium glutamate).