Vimal Elaichi ad: Delhi HC order on Monday on plea to cancel notices to SRK, others

The Delhi High Court will decide whether it can hear PB Agro's challenge to notices sent to Vimal Elaichi's celebrity endorsers -- Shah Rukh Khan, Ajay Devgn and Tiger Shroff. The ruling will determine where the surrogate advertising dispute against the Maharashtra FDA proceeds.

In Short

• PB Agro seeks to cancel notices to SRK, Ajay Devgn, Tiger Shroff over Vimal ad
• Maharashtra FDA alleges Vimal Elaichi ad promotes banned pan masala
• Centre says case should be in Bombay HC and not Delhi HC

The Delhi High Court is set to deliver on Monday its order on whether it has the territorial jurisdiction to hear a plea by PB Agro LLP, the makers of Vimal Elaichi, seeking to quash show-cause notices issued to its brand ambassadors Shah Rukh Khan, Ajay Devgn and Tiger Shroff by the Maharashtra Food and Drug Administration.

The notices allege that advertisements for Vimal Elaichi amount to surrogate promotion of Vimal Pan Masala, a chewable product banned in Maharashtra. Justice Swarana Kanta Sharma, who reserved the order on the jurisdiction issue, is scheduled to pronounce it on September 14.

In its petition, PB Agro LLP said it engages reputed actors to promote its cardamom product sold under the Vimal brand and has endorsement agreements with them. The company said it assures that the advertising campaign complies fully with applicable laws.

According to the plea, the Maharashtra FDA issued regulatory notices alleging that the Vimal Elaichi advertisements were in effect promoting Vimal Pan Masala.

The petition said the state regulator directed the actors appearing in the advertisements to submit documents to show that Vimal Elaichi is different from the banned pan masala products. It also called for the promotional campaign to be stopped and for related material to be withdrawn from digital platforms.

Counsel for the petitioner argued that the August 11 FDA notice was sent only to the actors and not to the company, even though any action by the regulator would cause irreparable harm to the company alone. The counsel also said the petitioner was not given an opportunity to be heard.

The company further claimed that the Maharashtra FDA had no jurisdiction to direct that the advertisement be halted.

In its petition, it said the allegations of surrogate advertising were baseless because Vimal pan masala has not been manufactured or sold in Maharashtra since 2001, and pan masala containing tobacco has been barred across the country by the Supreme Court since 2013.

On the other side, counsel appearing for the Centre and the Central Consumer Protection Authority argued that the petition ought to have been filed before the Bombay High Court because the show-cause notice was issued by the Maharashtra government. The Delhi High Court will now decide on Monday whether it can hear the matter.

- Ends