Govt says claims from nestle india can go beyond rs 640 cr

A regulator in the northern state of Uttar Pradesh said in May it had found lead above permissible levels in a sample of noodles, prompting denials from Nestle, which says it has carried out hundreds of its own tests, and a debate on India’s safety standards and testing capacities.

Packets of Maggi instant noodles are displayed at a tea stall in Dharmsala, India, on Wednesday.

The government said on Wednesday that it has filed a suit with the country’s top consumer court, National Consumer Disputes Redressal Commission (NCDRC), for 6,400 million rupees ($98.6m) in damages from the Indian arm of the Swiss food giant. According to the statement, Maggi noodles have since passed stringent food safety tests both in India and overseas.

The ministry in a statement today said: “The Department has filed this class action suit on behalf of the large number of consumers of Maggi against Nestle India on grounds of unfair trade practices, sale of defective goods and sale of Maggi Oats Noodles to the public without product approval”.

“In addition Maggi noodles made in India have been tested and found to be safe for consumption by the authorities of several countries across the world”, the company claimed.

“Our complaint is over their unfair trade practices and the court will now issue them notices to hear their response”.

Two weeks ago the new head of Nestlé India, Suresh Narayanan, said his immediate goal was to rebuild the company’s brand “brick-by-brick, consumer-by-consumer and employee-by-employee”, a task that is not getting any easier.

Nestle India has continued to maintain that quality and safety in manufacture of its products have been of paramount importance to the company.

It had been selling the brand for over three decades in India, and had 80 per cent of the country’s instant noodle market before the ban. The ban in India was challenged by Nestlé at the Bombay high court.

Several celebrities have endorsed Maggi over the years.