Soft drink major Coca Cola has 3,549 tonnes of sugar stored in its Khed warehouse for its plant in Pirangut, 50 km from Pune. This sugar has been allegedly lying unused at the warehouse for over a month and the government has now forbidden the company from using it, citing the Sugar Control Act and Essential Commodities Act.

However, Coca Cola, in its reply to a showcause notice, has denied flouting the two Acts, and will get to know in the next few days if it can still use the sugar.

The government, following an inspection in mid-July, alleged that Coca Cola had stocked excess sugar on its premises and thus had violated the Acts. This was followed by the district collectorate restricting Coca Cola from consuming its stock. According to officials, the stock is worth Rs 8.51 crore, when calculated at the rate of Rs 24 per kg.

“We should arrive at a decision soon. We have issued a show cause notice to Coca Cola for violating the Sugar Control Act; they have replied. Our team is now scrutinising the reply,” said R K Gaikwad, additional collector.

Coca Cola has denied the charge, saying the sugar was not for sale as was marked for consumption at its Pirangut plant. In a statement, Coke said it had already replied to a show cause notice issued on August 25: “The company has submitted that the show-cause notice is unjustified, void and illegal as the company has not breached any provisions of Essential Commodities Act or the Sugar Control Act. The inventory of sugar is not meant for sale, but for its bonafide consumption. The company has further demanded that the stocks of sugar which is a critical raw material for its manufacturing operations should be released immediately.”

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