Maggi row: NCDRC issues notice to Nestle seeking Rs 640 cr

The Department of Consumer Affairs has filed the class action suit on August 11 in the National Consumer Disputes Redressal Commission.

Zee Media Bureau

New Delhi: The National Consumer Disputes Redressal Commission on Monday issued notice to Nestle on Centre's plea seeking Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements.

The Department of Consumer Affairs has filed the class action suit on August 11 in the National Consumer Disputes Redressal Commission.

The bench of the National Consumer Disputed Redressal Commission, presided over by Justice J.K Jain and Justice B.C. Mehta, also wanted to look into the findings of fresh test reports of the popular instant noodles by accredited laboratories.

"The court has sought fresh, sealed samples to be tested by accredited labs. Further course of action will be decided by the ministry (of consumer affairs)," Additional Solicitor General Sanjay Jain said after the preliminary hearing.

The Department of Consumer Affairs has alleged that Nestle by its "unfair trade practices" vis a vis Maggi instant noodles, by selling "defective and hazardous products" has caused injury to millions of consumers, which called for this class action suit.

"This makes for a compelling story of trade practices of a large corporation with vast resources taking advantage of unwary consumers," the government said in its petition.

Last week, Nestle India had got a significant respite with the Bombay High Court lifting the ban on the sale of nine various instant noodle brand and ordering fresh tests in three separate labs to ascertain that the products complied with the country`s food safety norms.

The conditional relief came following a petition filed by Nestle challenging the regulatory order of June 5 for the withdrawal and recall of nine variants of "Maggi Instant Noodles" and "Maggi Oats Masala Noodles with Tastemaker".

The Food Safety and Standards Authority of India (FSSAI), the industry watchdog, had said in its ban-order of June 5 that tests conducted on a batch of Maggi were found to contain more-than-permissible levels of lead and high quantities of mono-sodium glutamate (MSG).

With Agency Inputs

Zee News App: Read latest news of India and world, bollywood news, business updates, cricket scores, etc. Download the Zee news app now to keep up with daily breaking news and live news event coverage.