Indian government seeking damages from Nestle India over alleged unsafe lead

The Consumer Affairs Ministry will file a complaint with the National Consumer Disputes Redressal Commission (NCDRC) using a provision in the three decade old Consumer Protection Act, that has never been used before.

The government to seek Rs 426 Crore on the damage done by the Indian Unit of Swiss multinational food and beverage company Nestle.

Nestle India spokesperson did not offer any comment saying the company has not received any intimation about the issue.

Earlier this month, Nestle began withdrawing the Maggi from all the stores after regulators said they found higher lead in Maggi. “We have sought damage of about Rs 640 crore”, a source said.

In more trouble for Maggi, the Uttar Pradesh Food and Drug Administration (FDA) has seized 20,000 kgs of the two minute noodles from a Nestle warehouse in Lucknow.

Replying to another question, Nadda said a show cause notice was issued asking the company as to why the product approvals granted in respect of nine variants of Maggi noodles be not withdrawn.

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

The complaint is being filed under Section 12(1)(d) of the Consumer Protection Act, which mentions, “The Central or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general”.

On 5 August, India’s food regulator Food Safety and Standards Authority of India (FSSAI) clarified that it has not given “any clean chit” to Nestle India Ltd regarding the safety of Maggi noodles.

Nestle India is awaiting a verdict from the Bombay High Court in its case against the Food Safety and Standards Authority of India (FSSAI), after which company plans to decide on further course of action.

FSSAI had also banned Maggi instant noodles, saying that it was unsafe for consumption.