In March 2004, local officials in Kerala shut down a $16 million Coke bottling plant blamed for a drastic decline in both quantity and quality of water available to local farmers and villagers. In April 2005, the Kerala High CourtHindustan Coca-Cola Beverages v. Perumatty Grama Panchayat, W.A. No. 2125 of 2003 and W.A. No. 215 of 2004, 2005 (2) KLT 554. See also the case of Pepsico India Holdings v. State of Kerala, WP(C) Nos. 27334 of 2003 & 27736 of 2004, 2007 (2) KLT 835 concerning Kanjikode rejected water use claims, noting that wells there continued to dry up last summer, months after the local Coke plant stopped operating. Further, a scientific study requested by the court found that while the plant had "aggravated the water scarcity situation," the "most significant factor" was a lack of rainfall. The case has been appealed and a decision is pending.Civil Appeal Nos. 4033 & 4034 of 2009 In 2017, Coca-Cola declared that it had no plans to restart bottling operations in Plachimada, Kerala. In June 2021, the factory was converted into a Covid-19 First Line treatment center.
