Kerala HC quashes govt ban on colas

THIRUVANANTHAPURAM: The Kerala high court on Friday set aside the ban on the manufacture and sale of Coca-Cola and Pepsi in the state, saying the government has no power to ban food products under the Kerala Prevention of Food Adulteration (PFA) Act.

A division bench of Chief Justice VK Bali and Justice M Ramachandran termed the ban arbitrary.

While the soft drink majors welcomed the order, the government said it is considering further legal options. Terming the order as “unfortunate”, Chief Minister VS Achuthanandan said his government will appeal to the Supreme Court.

Coca-Cola and PepsiCo moved the high court on August 16 and 17, respectively, a week after the ban was imposed under the Kerala PFA Act.

Though the court order allows PepsiCo to open its plan in Kanjikode Industrial Development Area, Coca-Cola will have to wait until the Supreme Court decides on the fate of its Plachimada plant. The firm petitioned the court after the government barred it from drawing groundwater from the plant premises. Operations have been suspended at the plant since February 21, 2004.

“We are gratified that the honourable high court of Kerala has set aside the illegal orders of the Government of Kerala and the State Food (Health) Authority dated August 10 and 11, 2006, banning the manufacture and sale of Coca-Cola in the state,” a statement from Hindustan Coca-Cola Beverages said. The company said it will immediately make Coca-Cola available across Kerala.