In a relief for aerated drinks company Pepsi and Coca-Cola, the Madras High Court's Madurai bench dismissed two PILs against the supply of Thamirabarani water. 

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Stating there will be no ban on water supply to Pepsi and Coca-Cola, the High Court also lifted its stay order. The companies have insisted that they would use only the surplus water.

On Wednesday, traders across the state, taking their cue from the protestors who argued that multinational soft drink companies were exploiting groundwater resources, had stopped selling PepsiCo and Coca-Cola's fizzy drinks, citing health and environmental grounds.

Two major traders' body – Tamil Nadu Traders Federation (TNTF) and Consortium of Tamil Nadu Traders Association (CTNTA) – enforced the boycott of both brands across more than 20 lakh shops affiliated with them; a third are expected to take the products off the shelves immediately. 

The villagers have been against the drawing of water from the Thamirabarani river.

The state has been facing its worst-ever drought in recent decades with over 200 farmers reportedly committing suicide due to multiple crop failure. "But the bottling plants of the MNCs are continuing to exploit ground waters creating further stress on the farmers," alleged T Vellaiyan, president of the TNTF.

"We are not opposing it just because these products are made by the MNCs. But it does more harm than good to the body. We decided to boycott because of the harmful content," said A M Vikramaraja, president of the CTNTA.