Coca Cola India's bottling arm has been fined Rs 15 lakh by the Uttar Pradesh government for selling soft drinks beyond the expiry date.
A distributor of the company's products was also fined Rs 1 lakh by Additional District Magistrate Vishal Singh, who is in charge of food safety.
The action came after five samples of the company's soft drinks collected in 2012 were found to be 'sub-standard' in tests conducted at the state government laboratory in Lucknow.
According to Singh, a large quantity of soft drinks which have passed expiry dates were found during a raid at the distributor's godown.
"The order was signed yesterday and company has been given 15 days time to deposit the sum into the state treasury. At the same time they can appeal against the order," Singh said.
When contacted, a spokesperson of Hindustan Coca-Cola Beverages (HCCB) said the company has not received any such order till date.
"On receipt (of the order) HCCB will review and take appropriate legal recourse. We are confident of the safety and quality of our products and would reassure our consumers of the same. We exercise stringent quality and safety measures specifically designed to prevent any product integrity issues," the spokesperson added.
According to local distributor Rajesh Sharma, he had intimated the company about the expired stock and alleged that it wasn't taken back.