The Bombay High Court has ruled against Hindustan
Coca-Cola Beverages Private Limited (HCCB), allowing criminal proceedings
related to allegations of selling adulterated beverages to proceed.
The
case dates back to a 2001 inspection by the Food and Drug Administration (FDA)
in Jalna district, Maharashtra. The FDA claimed to have found fibrous material
and cobwebs inside sealed bottles of Canada Dry, a sweetened carbonated drink.
The
administration seized 321 bottles of the drink, which were marked with an
expiry date of December 12, 2001. Following tests, the FDA filed a complaint
against HCCB under the Prevention of Food Adulteration Act, a law aimed at
maintaining food safety standards in India.
In 2010, a magistrate’s court in
Jalna issued a notice to the company. HCCB sought to have the complaint
quashed, citing procedural delays.
High Court ruling
On Wednesday, Justice Y G
Khobragade of the Aurangabad bench dismissed the company’s plea to terminate
the case, citing insufficient grounds for quashing the complaint. The court
also refused to extend an interim stay on the proceedings, which had stalled the
case for over 14 years.
With this ruling, the trial is
set to resume, bringing renewed attention to the two-decade-old allegations.
Jubilant Bhartia
stake acquisition
This legal development coincides
with major changes in HCCB’s ownership. The Jubilant Bhartia Group, a prominent
business conglomerate, recently announced its acquisition of a 40 per cent
stake in HCCB for Rs 12,500 crore, valuing the company at Rs 31,250 crore.
Shyam S Bhartia, founder and chairman, and Hari S Bhartia, co-chairman
of Jubilant Bhartia, described the acquisition as a strategic investment,
expressing optimism about India’s food and beverage sector’s growth potential.