BBC correspondent in Mumbai
The confectionery giant Cadbury has denied that there is an infestation in its Indian products.
On Friday, the Food and Drug Administration (FDA) of the western Indian state of Maharashtra said it had found insects in Dairy Milk chocolates and ordered the state-wide seizure of the chocolates.
The company says the problem was almost certainly the result of the way the chocolates were stored by a retailer, rather than any problem at the factory.
Around a million bars are sold every day
Cadbury says that it has investigated all the samples that came out of the Bombay factory and they are all of good quality and free of any trace of infestation.
It says since chocolates require specific care and attention in storage, the problem could have been with a particular retail outlet.
The company supplies 650,000 retailers directly and indirectly and is India's leading chocolate company, selling more than a million bars there every day.
FDA commissioner Uttam Khobragade had ordered the seizure of all Dairy Milk chocolates in the state after a live insect was found in one pack and a dead insect in another.
Mr Khobragade said that the company would be served notice on the basis of the investigation report of the seized samples.
The seizure has been widely reported by the local media.