New Delhi: Global cola majors Pepsi and Coke, which are at the receiving end of a pesticide row, got an unexpected support from apex industry body FICCI on Thursday.
The industry body has reportedly cautioned states against taking any hasty decisions on the current issue of banning major cola companies’ operations.
A day after Kerala banned production and sale of colas of both Coca Cola and Pepsi; FICCI said it would write to the state government to "follow the process of law" as 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 said.
FICCI General Secretary Amit Mitra added the chamber President would write to Kerala Chief Minister, appealing to him to "please follow the due process and let the regulator substantiate the violation as per existing laws before taking action".
Karnataka had decided to ban sale of Coca Cola and Pepsi in educational institutions and hospitals on Wednesday, while Rajasthan, Punjab, Madhya Pradesh and Gujarat have already banned cola sales in educational institutions and government offices.
Mitra said action without following regulatory process "will not only affect foreign investment, but also domestic investment".
"It is important that due process is followed so that no investors says that we have not got justice," he said.
Mitra termed the action of Kerala government to impose a ban and asking the company to take its investment back as a "dangerous precedent for the industry."
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