Maggi ban: Govt drags Nestle India to court, seeks Rs 640 cr in damages

The government on Tuesday filed a complaint against Nestle India over Maggi before the National Consumer Disputes Redressal Commission (NCDRC) seeking damages worth Rs 640 crore.

Zee Media Bureau

New Delhi: The government on Tuesday filed a complaint against Nestle India over Maggi before the National Consumer Disputes Redressal Commission (NCDRC) seeking damages worth Rs 640 crore.

The government filed the complaint against the Indian unit of Swiss giant Nestle for allegedly indulging in unfair trade practices and misleading advertisements related to Maggi, its banned noodles product.

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It is for the first time time in the nearly three-decade-old Consumer Protection Act that the government has used this provision.

The case has been filed after the Food and Consumer Affairs Minister Ram Vilas Paswan cleared the file yesterday.

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"Under section 12(1D) of the Consumer Protection Act, we have filed a complaint before NCDRC against Nestle India over the Maggi issue. We have sought damage of about Rs 640 crore," a source said.

The Department has filed a complaint against Nestle for causing damage to Indian consumers by allegedly involving in unfair trade practices and false labelling related to the Maggi noodles product.

Also read: Indian authorities forced us to burn 29,000 tonnes of Maggi

"The company said no added MSG, despite presence of MSG," sources said adding that the company has been charged for misleading advertisements that Maggi noodles is healthy.

Describing the alleged lapses related to food safety standards in Maggi noodles as a "serious issue", Consumer Affairs Minister Ram Vilas Paswan had earlier said NCDRC will investigate the matter and take appropriate action.

Usually, NCDRC comes into the picture following complaints filed by a consumer, but a section of this Act of 1986 also provides for the government to register a complaint.

For the first time, the government is taking action under Section 12-1-D of the Consumer Protection Act, under which both the Centre and states have powers to file complaints.

This particular section deals in the manner in which a complaint can be made before NCDRC.

Also read: US health regulator says Maggi's is safe

In June, food safety regulator FSSAI had banned Maggi noodles after it found excess level of lead in samples, terming it as "unsafe and hazardous for human consumption". Subsequently, a few states decided to ban the noodles.

FSSAI had also said Nestle violated labeling regulations on taste enhancer 'MSG' and ordered the company to submit a compliance report on its orders.

With PTI Inputs

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