Indian government seeking damages from Nestle India

The Consumer Affairs Ministry filed a complaint against Nestle India before the National Consumer Disputes Redressal Commission (NCDRC) using a provision for the first time in the almost three-decade-old Consumer Protection Act.

The complaint against Maggi will be among the first of its kind with the government taking up the issue in the consumer forum on behalf of consumers. From the recent study, Maggi gave a big loss to the company Nestle India.

Nestle India’s new chief Suresh Narayanan, however, is in a hurry to bring the instant noodles brand back in the market and has sought to strike a conciliatory note with authorities.

Earlier this month, Nestle began withdrawing the Maggi from all the stores after regulators said they found higher lead in Maggi. However, sources said, “Under section 12(1D) of the Consumer Protection Act, we have filed a complaint before NCDRC against Nestle India over the Maggi issue”.

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. Recently, on August 4, an FSSAI apprived lab had declared Maggi safe to be consumed. The order was based on the test results taken from different states, confirming presence of lead beyond permissible limit, Nadda said.

The complaint is being filed under Clause-12(d) of the Consumer Protection Act, which mentions that “the central government or the state government, as the case may be, either in individual capacity or as a representative of interest of the consumers in general”, can file such a case with the NCDRC.

The instant noodles were banned as “unsafe and hazardous for human consumption” by India’s food safety regulator in June; Nestle was also accused of violating labelling rules and misleading customers by declaring the noodles do not contain MSG or added mono-sodium glutamate (MSG), a taste enhancer.