“The department said the complaint has been filed “to safeguard and protect the interest of millions of consumers who have been victims of defective, misbranded and hazardous goods/products”. These issues are awaiting judgment by the Hon’ble Bombay High Court, it added.
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The ministry points out that the complainant has sought a sum of Rs 284,55,00,000 that the Opponent Company is liable to pay and a sum of Rs 355,40,70,000 as punitive damages on account of the gross negligence, apathy and callousness on the part of the Opponent Company.
The government’s lawsuit, citing unfair trade practices, the sale of defective goods and the sale of a product without approval, has been filed in the National Consumer Disputes Redressal Commission, a quasi-judicial body whose rulings are legally binding.
Nestle, the first foreign firm in India to face such a damages claim, is suffering its worst public relations crisis in the country to date, after a regulator in the northern state of Uttar Pradesh found monosodium glutamate (MSG) and excess lead in a sample of its hugely popular noodles. “Each one of these tests have shown lead to be far below the permissible limits“.
In response to the action, Nestlé India pointed out its “stringent” adherence to safety. As Time Magazine states, the Indian government is “accusing the Swiss company of misleading customers and endangering their health while also resorting to unfair trade practices”.
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.
Nestlé said in a statement that it is “disappointed” by the suit. The Bombay High Court still has to give the judgment.
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Nestle has withdrawn the product in India, but continues to sell it elsewhere and has always denied the charge.
