Maggi Noodles Again Hit by Food Safety Scandal, Nestle Stock Tumbles

India’s food safety authority, the FSSAI, sent a formal notice to Nestle India after allegations surfaced online that some packets of Maggi instant noodles were contaminated with insects or larvae. The news rattled investors—Nestle India’s shares fell by 3.29%, closing at ₹1,375.70 on June 12, 2026.

Details of the FSSAI Demands

Here’s what happened: The FSSAI demanded that Nestle India submit a full report covering several points. They want details about the suppliers for the raw materials in the implicated batch; records from Nestle’s own quality checks; steps taken to pull any affected products from stores; and new safeguards to stop anything like this from happening again. The regulator also asked Nestle to identify the specific batch under suspicion and to name the supplier of those raw materials.

Origin of the Complaint

The whole thing started with a complaint on social media, from an unverified account on X. According to filings Nestle made to the stock exchanges, the person behind the complaint claimed Maggi noodles were infested, but didn’t provide a sample—even after Nestle reached out several times to request one.

Nestle’s Response

Nestle India pushed back hard against the accusations, telling both the NSE and BSE that the allegations were baseless and came from an unverified source. The company said it had already sent a reference sample from the same batch to a lab accredited by FSSAI and NABL, which found zero signs of infestation. Nestle’s also sent authorities a detailed report—complete with testing records, batch info, and market sample data—to show their product is safe.

Market Reaction

Investors weren’t reassured. On June 11, the day the FSSAI notice became public, Nestle’s stock dropped 3.23% to ₹1,375.85, then slipped further by the next day. CNBC TV18 noted the dip came from market fears, not company admissions.

Previous Issues with Maggi

This isn’t the first time Maggi landed in hot water. Back in 2015, FSSAI banned it nationwide after tests showed lead levels at 172 parts per million—almost seven times above the legal limit. That crisis led to the destruction of 400 million noodle packets, a government lawsuit seeking ₹640 crore in damages, and Maggi’s temporary disappearance from Indian shelves.

Current Situation

This time, Nestle isn’t alone under the microscope: FSSAI has also fired off notices to KFC and Flipkart about separate food safety concerns, signaling the agency’s broader crackdown across the industry. As of June 13, Nestle’s waiting for FSSAI’s review of its response. The company stands firm—calling the current claims unverified and pointing to lab tests that cleared their noodles.