Wednesday, September 06, 2006

Karnataka High Court partially lifts ban on sale of Pepsi

In a major relief to the multinational cola giant Pepsi, the Karnataka High Court has partially lifted the ban on sale of its soft drinks in various public places in the State.

A single-judge bench of the High Court stayed the operation of the ban orders on sale of Pepsi’s aerated drinks in government offices, hospitals and hostels. But, allowed the prohibition to remain in force at schools and colleges.

The partial stay on the Karnataka Government’s ban on sale of soft drinks comes as a major relief to Pepsi, which has launched a major publicity drive to stave off the charges of high pesticide content in its products.

In his interim order, Justice D V Shailendra Kumar, however, said a partial ban on the sale of Pepsi’s products would continue in the state as the soft drinks will remain banned in schools and colleges of the state. But, they can be sold freely in hospitals, government offices and hostels.

The multinational cola manufacturer had move the High Court after the JD (S)-BJP Government had banned the sale of Pepsi’s products in Government offices, hospitals and hostels, besides schools and colleges with effect from August 14 by issuing a notification. The Karnataka Government’s move came after the Centre for Science and Environment, New Delhi, came out with a report that soft drinks manufactured by different multinational companies contained a high level of pesticide residues that were harmful to health.

But, Pepsico India Holdings, in its argument, contended that the Karnataka Government did not have powers to ban the sale of its soft drinks under the Prevention of Food Adulteration Act. Only the Federal Government had the powers to prohibit the sale of any food article.

But, the counsel for Karnataka Government claimed that the State Government had powers to impose prohibition on the grounds that it would injure public health.

After hearing the case, the judge observed that the “manner in which the State Government had issued the notification raises a question about the bonafide exercise of power. The State should have gone about in a more systematic manner in getting samples from the laboratory”.

After partially staying the Government order, the judge posted the case for further hearing on September 25.

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