Govt to seek damages of Rs 426 cr from Nestle

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New Delhi, August 11: The government will seek Rs 426 crore as damages from the Indian unit of Swiss giant Nestle for allegedly indulging in unfair trade practices and misleading advertisements related to Maggi, its banned noodles product.
Seeking financial penalties among other actions, the consumer affairs ministry will soon file a complaint against the company before the National Consumer Disputes Redressal Com­mission (NCDRC) using a provision for the first time in the nearly three-decade-old Consumer Protection Act.
“The file on the Maggi issue has been cleared by the minister. The department of consumer affairs will seek about Rs 426 crore damages from the company,” said a source.
The department will file a complaint against Nestle for causing damage to Indian consumers by involving in unfair trade practices and using misleading advertisements related to the Maggi noodles product.
Describing the alleged lapses related to food safety standards in Maggi noodles as a “serious issue”, consumer affairs minister Ram Vilas Paswan had earlier said NCDRC will investigate the matter.
Usually, the consumer disputes redressal forum comes into the picture after complaints are filed by a consumer. However, a section of this Act of 1986 also provides for the government to register a complaint.
For the first time, the government is taking action under Section 12-1-D of the Consumer Protection Act, under which both the Centre and states have powers to file complaints. This particular section deals with the manner in which a complaint can be made before NCDRC.
In June, the Food Safety and Standards Auth­ority of India (FSSAI) had banned Maggi noodles after it had found excess levels of lead in samples. PTI