A day after the government filed a class action suit against Nestlé India seeking Rs 639.95 crore in damages for alleged “unfair trade practices” and “gross negligence, apathy and callousness”, the company Wednesday expressed its disapppointment over the government’s move.
“We are disappointed with the unprecedented step of filing of a complaint before the National Consumer Disputes Redressal Commission (NCDRC) against Nestlé India,” said the company, adding that the issues that have been raised are already pending in Bombay High Court. While Nestlé officials maintained that the company had not received any official notice about the complaint filed before the NCDRC, the company said, “Based on newspaper reports it appears that the complaint makes similar allegations which were made to ban the product on 5th June 2015.”
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On Tuesday, the Department of Consumer Affairs filed its complaint with NCDRC. A press statement issued by the department Wednesday said, “The department has filed this class action suit on behalf of the large number of consumers of Maggi in the country against Nestlé India on grounds of unfair trade practices, sale of defective goods and sale of goods to the public by selling Maggi Oats Noodles without product approval.”
In its complaint, it has sought Rs 284.55 crore in basic liability and Rs 355.40 crore in punitive damages. The total claim amounts to Rs 639.95 crore.
A government source said that the company was accused of causing damage to Indian consumers by allegedly indulging in unfair trade practices and false labelling related to the Maggi noodles product.
Nestlé, however, in its statement maintained that it follows highest standards of food quality and safety. It also said, “In recent months, we had over 2,700 samples of Maggi noodles tested by several accredited laboratories both in India and abroad. Each one of these tests have shown lead to be far below the permissible limits, as was the case with the five samples tested by the Government Accredited Referral Food Laboratory, Central Food Technological Research Institute, Mysuru on samples sent by FDA, Goa,” said the company.
While Nestlé had to withdraw its instant noodles brand Maggi from the market over allegations of high lead content and presence of monosodium glutamate (MSG) after the government has alleged that the company misled consumers, Nestlé said that it does not use MSG to manufacture Maggi noodles.
“MSG is one of several forms of glutamic acid found in natural foods such as groundnuts/peanuts, wheat flour, tomatoes and cheese. As we use some of these ingredients in Maggi noodles, the product will contain natural glutamic acid,” the company said.
Govt Claim may exceed Rs 640cr
New Delhi: A PTI report Wednesday said that the government’s claim from Nestlé may exceed Rs 640 crore as it is tabulating further damages to be sought. The Consumer Affairs Ministry has said that the ministry is in the process of “tabulating further damages” and may seek more when further facts and data emerge. ENS
Nestle Maggi.
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