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Govt seeks Rs640 crore compensation from Nestle — News in Numbers
It has also alleged the company indulged in misleading and deceptive advertisements and also resorted to unfair trade practices to earn “unjust profits”.
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The “modest” figure of Rs.
The government said Wednesday it has filed a suit with the country’s top consumer court for 6,400 million rupees ($98.6 million) in damages from the Indian arm of the Swiss food giant.
The Indian government has filed a Rs 640 crore class action on behalf of consumers with the National Consumer Disputes Redressal Commission (NCDRC) against Nestle India under section 12(1D) of the Consumer Protection Act, reported the PTI.
Depicting the claimed allegations in Maggi noodles and noticing it as a “serious issue”, Consumer Affairs Minister Ram Vilas Paswan had before said NCDRC will research the matter and make proper move.
In June, food security regulator FSSAI had barred Maggi noodles in the united states, terming it as ” risky and unsafe ” for usage because of existence of guide beyond permissible limitations.
Amitabh Bachchan, Madhuri Dixit and Preeti Zinta, who were brand ambassadors of Maggi Noodles over the past few years, are facing legal action for propagating false statements regarding the noodles. 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.
According to sources, the complaint is to be filed on the basis of unfair trade practices and misleading advertisements and the government may seek financial penalties among other actions. Thusly, a couple states chose to boycott the noodles.
Nestle India’s stocks continued to slumpamid growing concerns about safety standards of its popular Maggi noodles.
FSSAI had also said Nestle India had violated labelling regulations on taste enhancer “MSG” and ordered the company to submit a compliance report on the same.
State-owned retail outlets in Kerala and Delhi have banned the sale of Maggi.
“A sample which was taken from Deoria has failed the lab test”, Additional Commissioner (Food) FDA Vijay Bahadur Yadav had said adding that more than 100 samples are being tested.
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Maggi was banned in India after the food safety regulator accused Nestle of not complying with food safety laws.