Relief for Nestle as government’s plea against sale Maggi Noodles dismissed

1 year ago 25

The NCDRC dismissed the government's appeal against Nestle India regarding unfair practices in selling Maggi noodles.

 CMD

The NCDRC ruled in favor of Nestle India on April 2, 2024.

India Today Business Desk

New Delhi,UPDATED: Apr 4, 2024 17:26 IST

The National Consumer Dispute Redressal Commission (NCDRC) has rejected the government's appeal against Nestle India about unfair practices related to selling Maggi noodles, the company confirmed on Thursday.

The Department of Consumer Affairs lodged a complaint with the NCDRC in 2015, stating that Nestle was involved in unfair trade practices by making and selling unsafe goods to the public.

The NCDRC ruled in favor of Nestle India on April 2, 2024, and dismissed the plea.

Previously, the government had demanded Rs 285 crore in compensation and Rs 355.41 crore in punitive damages.

The government, in its 47-page complaint filed in consumer court, claimed that Nestle, in a bid to increase profit, had risked the health and well-being of millions of consumers.

The government's complaint came after the Food Safety and Standards Authority of India (FSSAI) took action against Maggi in 2015, citing high levels of lead in some samples and inadequate labelling of monosodium glutamate (MSG), commonly known as ajinomoto.

Despite initial bans and financial losses for Nestle amounting to around Rs 450 crore, subsequent tests both in India and abroad indicated the safety of Maggi noodles. This prompted the government to file a complaint with the NCDRC.

This marked the first instance when the Consumer Affairs Ministry invoked a provision in the nearly four-decade-old Consumer Protection Act to bring a company before the NCDRC. Normally, the NCDRC acts upon complaints from consumers, but the law also allows the government to file a complaint.

In its petition, the government accused Nestle of misleading Indian consumers by promoting Maggi as a healthy food choice with its slogan 'Tasty Bhi, Healthy Bhi.'

Despite the legal tussle, Maggi returned to store shelves five months after the initial ban, following clearance from government authorities.

Published On:

Apr 4, 2024

Article From: www.indiatoday.in
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