NEW DELHI: The Food Safety and Standards Authority of India (FSSAI) has initiated legal proceedings against Nestle India over multiple non-compliances under the FSS Act. Following the development, shares of the FMCG major fell marginally on September 18. FSSAI has filed three adjudication cases against Nestle India concerning three of its products.
The products facing legal action are Infant Nutrition, NAN Excella and Lactogen. A sample of follow-up formula manufactured by Nestle India was found to be sub-standard during laboratory analysis. The sample was found to contain Biotin below the prescribed level, and a second laboratory test also confirmed that it did not meet the required Biotin standard. FSSAI said the action forms part of its ongoing food-safety enforcement efforts.
FSSAI said it examined the infant nutrition products and their promotional material available on e-commerce platforms.
According to FSSAI, promotional claims such as “5 HMOs” and “Whey Protein” were found on NAN Excella Pro Stage 1, while Lactogen Pro 1 carried a claim that “Whey Protein” is easy to digest. The food regulator said it sought clarifications from Nestlé India over these claims.
FSSAI said the two products were found to be in contravention of Regulation 4(2) of the FSS (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional claims and material intended to increase the saleability of infant foods. It also cited Section 3 of the IMS Act, 1992, which prohibits the advertisement and promotion of such products.
Separately, laboratory analysis of a sample of follow-up formula manufactured by Nestle India found its Biotin content to be below the prescribed standard. The sample was subsequently sent for re-analysis, with the referral laboratory also finding it non-compliant with the Biotin requirement under the 2020 regulations. In view of these findings, FSSAI said it has filed three separate adjudication cases against Nestlé India concerning the three products.
Following the development, Nestle India shares closed 0.4 per cent lower at Rs 1,364.90 apiece on September 18, after touching an intraday low of Rs 1,332.80.
Responding to the action, a Nestle India spokesperson said the company’s products comply with all applicable regulations. The company said NAN Excella Pro and Lactogen Pro, along with their labels, had been approved by an FSSAI expert committee.
The spokesperson said Nestle India had submitted a detailed response to the authorities, maintaining that the statements on the labels were factual and supported by scientific literature. The company also reiterated its adherence to applicable regulations, norms and labelling requirements and said it would continue to cooperate with FSSAI in its consumer-awareness efforts.
