Government Sues Nestlé Over Maggi Issue

A day after the government filed a Rs 640-crore class action suit against Nestle India before consumer redressal forum NCDRC, the company on Wednesday said it is disappointed with the “unprecedented step”.

“The punitive damages have been claimed on account of gross negligence, apathy and callousness on the part of the opponent company”.

Sources said, the damage was calculated based on the latest figure of its annual sales of Maggi, estimated at around Rs 2,500 crore. 639 crore in damages for alleged unfair trade practices, false labelling and misleading advertisement.

Initially, a spokesman of the Indian branch of Nestle had said that the group had not yet been officially informed of the government’s request to the NCDRC, which has the power to order companies to pay fines. This specific segment bargains in the way in which a protest can be made before NCDRC. The Swiss food company is also confronting the worst public relations problem in India to date. It reads, “in addition to our regular testing of the finished product and raw materials, we have carried out extensive tests of our MAGGI Noodles in India”.

Reacting to the suit filed in the consumer court, senior counsel Vivek Tankha, who was additional solicitor general in the previous United Progressive Alliance (UPA) government, felt such action could have come after some matters were settled. A complaint was filed in the court of the Chief Judicial Magistrate, Barabanki, on May 30, by lawyer Santosh Kumar Singh, saying that by endorsing Maggi the film stars have misled people.

It also reiterated that authorities of several countries had found “made in India” Maggi Noodles to be safe for consumption.

A USFDA representative, within an e mailed record, stated, ” offered in america and Subsequent information reviews about supposed guide levels in Maggi noodles produced by Nestle, FDA examined a restricted quantity of examples for cause contamination.

The minister said that the FSSAI had also advised the Commissioners of Food Safety of all the states and UTs on June 8 to draw and test the samples of Noodles and allied products of other brands as well.