Kerala government weighing legal options as HC quashes cola ban

Our Corporate Bureau
22 September 2006

Mumbai: The Kerala government would look for legal steps to enforce the ban on Coca-Cola and Pepsi in the state in the wake of the High Court order quashing a ban on sale and production of colas in the state, chief minister V S Achuthanandan said.

The order was issued on petitions filed by Hindustan Coca-Cola Beverages Ltd and Pepsi India Holding Private Ltd challenging the ban.

"The court's verdict quashing the Kerala government's order is unfortunate, and the government is exploring legal steps to take corrective measures to re-enforce the ban," Achuthanandan said.

A division bench comprising Chief Justice V K Bali and Justice M Ramachandran of the Kerala High Court had issued an order quashing the state government's order banning production and sale of Coca Cola and Pepsi in the state.

The bench upheld the contention of the two soft drink companies that the state government had no jurisdiction to impose a ban on manufacture and sale of their products.

The ban followed the release of findings of Delhi-based NGO, Centre for Science and Environment, that both soft drinks contained excessive doses of pesticide residues.