Nestle is reportedly facing a fine of INR4bn (US$62.3m) over the recall of its Maggi noodles in India as the country’s Department of Consumer Affairs prepares to file a legal complaint against the company. “We have sought damage of about Rs 640 crore”.
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“Under section 12(1D) of the Consumer Protection Act, we have filed a complaint before NCDRC against Nestle India over the Maggi issue”.
As Maggi noodles remains subject to a recall order after food safety regulator FSSAI said it had not given any clean bill of health on the safety of the instant noodles, the company now faces legal proceeding.
Nestle India contests the Indian laboratory tests and says its products are safe. The Swiss food giant also denies adding MSG to its noodles produced in India and the company is challenging a ban on the sale of Maggi noodles in India via the Bombay High Court.
Nestle, which has been accused of unfair trade practices, would be the first foreign firm to be asked to pay damages on behalf of consumers, the official said, declining to be named.
Surprisingly, the government is making a move under Section 12-1-D of the Consumer Protection Act, under which both the Center and states have forces to document objections.
The ministry has also charged that there was more than prescribed limits of “lead content” in Maggi noodles more than the prescribed limits and the company has not done “risk assessment nor taken product approval for the Maggi masala oats”, sources added.
Ordinarily, NCDRC comes into the frame taking after grievances recorded by a shopper, however an area of this Act of 1986 likewise accommodates the legislature to enlist a dissention.
Early this year, food safety inspectors in Uttar Pradesh had found excess lead in some Maggi noodle samples and declared it not fit for consumption.
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Surveillance, monitoring, inspection, random sampling and testing of food products are undertaken by the officials of food safety departments of states and UTs to ensure compliance with the Food Safety and Standards Act, 2006, Rules and Regulations.
