News: India Inc bats for cola giants

(PTI 11/08/2006) New Delhi - India Inc on Thursday backed cola majors Pepsico and Coca Cola, which are facing a ban from several states over pesticide found in their products, saying 'arbitrary, avoidable action has caused unnecessary panic' and cautioned the states against taking any hasty decisions.

A day after Kerala banned production and sale of colas of both Coca Cola and Pepsico, CII President R Seshasayee said the government action appeared to be arbitrary, avoidable and has caused unnecessary panic.

"We are concerned that apparently arbitrary decisions have been taken to ban manufacture and sale of carbonated beverages without going through the due process of law," he said.

Government actions have to be driven by rule of law and in the overall public interest, he added.

Echoing similar sentiments, FICCI said it would write to the state governments asking them to "follow the process of law," as action against these companies without validating the 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 told reporters.

FICCI General Secretary Amit Mitra said 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".

CII also observed "such reactions enormously impact the country's image and credibility.