Mumbai: Shares of Nestle India Ltd plunged 10% after the controversy over unsafe substances in Maggi Noodles escalated.

Nestle India shares fell as much as 10.11% to 6,119.40, their steepest decline since June 2006. They recovered marginally to close at 6191.10, down 9%.

The stock was the worst performer on BSE100, BSE200 and BSE500 indices on Wednesday. The benchmark BSE Sensex was trading at 27,043, down 0.5%.

Shares fell after media reports that a number of states are going ahead with testing samples of Maggi Noodles to check for unsafe substances.

On Tuesday, PTI reported that a senior government official in the Delhi government is calling for a ban on Maggi after samples were found to be unsafe.

This morning, another report said said that Kerala has already announced a ban on sale of Maggi in government shops. The report quoted Food Safety and Standards Authority of India (FSSAI) chief as saying that test reports on samples of Maggi Noodles from 20 states are due by the end of this week.

The controversy has been building ever since the Uttar Pradesh FDA found lead content in Maggi to be seven times more than the permissible level in a routine test of two dozen noodle packets and ordered a recall of a 200,000-pack batch of noodles at the end of April.

In a statement to the exchanges on 1 June, Nestle India said that they are fully cooperating with the authorities.

“We regularly monitor all our raw material for lead, including testing by accredited laboratories, which has consistently shown levels in Maggi Noodles to be within permissible limits," said the statement.

Maggi Noodles is the among the biggest categories for Nestle India after milk powder.

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