The Hindu : Business : Action on cola companies dangerous: chambers

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Friday, Aug 11, 2006

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Action on cola companies dangerous: chambers

Special Correspondent

NEW DELHI: In the wake of the ban slapped by the Kerala Government on production and sales by Pepsico and Coke following a fresh round of pesticide row, apex chambers have joined the issue by terming the action disruptive and dangerous and cautioning other States against taking any such hasty decision.

In a sharp reaction to the ban by the Kerala Government, the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) asked the State governments to follow the process of law since action against these companies without validating charges would adversely impact the investment climate.

"If without following due process of law, governments start announcing a ban, India's credibility as a law-abiding country may come into question,'' FICCI President S. K. Poddar observed at a press conference here on Thursday.

In a statement CII chief R. Seshasayee voiced strong concern over States' actions on reports based on `proposed' standards that had not yet been notified under the law of the land and warned that such reactions would impact the country's image and credibility. Even while expressing `extreme dismay over the controversy and subsequent actions of the State governments, Mr. Seshasayee asked the Central Government to expedite finalisation of the recommendations of the national level committee to enable quicker implementation of the input standards for carbonated beverages. Karnataka had on Wednesday decided to ban sale of Coca Cola and Pepsi in educational institutions and hospitals, while Rajasthan, Punjab, Madhya Pradesh and Gujarat had already banned the sale of Pepsi and Coca Cola in institutions and government offices.

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