Indian government to seek Rs 426-cr damages from Nestle India over Maggi
The Indian government will seek Rs 426 crore as damages from the Indian unit of Swiss giant Nestle for allegedly indulging in unfair trade practices and misleading advertisements related to Maggi, its banned noodles product.
Seeking financial penalties among other actions, the Consumer Affairs Ministry will soon file a complaint against the company before the National Consumer Disputes Redressal Commission (NCDRC) using a provision for the first time in the nearly three-decade-old Consumer Protection Act.
"The file on the Maggi issue has been cleared by the Minister. The Department of Consumer Affairs will seek about Rs 426-crore damages from the company," according to sources.
The Department will file a complaint against Nestle for causing damage to Indian consumers by allegedly involving in unfair trade practices and misleading advertisements related to the Maggi noodles product.
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.
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.
Authorities said the probe into possible misconduct by World Bank... READ MORE
Nearly 1,600 people were evacuated READ MORE
India has already shared that it stands with Afghans and is ready to... READ MORE
Shares of Southwest Airlines Co fell 4.2 per cent READ MORE
'He will be stepping down as the head of the NCA (National Cricket... READ MORE
One of the suspects tells Hyderabad authorities that victim had... READ MORE
Suicide bombing killed 47 on Friday READ MORE
"We are urging them not to wait," asserts Unicef Deputy Executive... READ MORE