Centre files class action suit against Nestle India, seeks damages worth Rs 640 cr

Tomojit Basu Updated - January 23, 2018 at 12:15 PM.

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There is more trouble ahead for Nestle India with the Consumer Affairs Ministry having filed a complaint under Section 12 (1)(d) of the Consumer Protection Act, 1986, at the National Consumer Disputes Redressal Commission (NCDRC). It has sought damages worth around Rs 640 crore.

The Ministry provided an official statement on Wednesday confirming reports that had emerged earlier with regard to a class action suit being filed by it on behalf of Maggi instant noodles consumers on the grounds of unfair trade practices, sale of defective goods and sale of 'Maggi Oats Noodles' without product approval.

Section 12(d) of the Act states that the Centre or a State Government could "either in individual capacity or as a representative of interest of the consumers in general" file a case at the NCDRC.

"The complainant has sought a sum of Rs 284,55,00,000 that the Opponent Company is liable to pay a sum of Rs.355,40,70,000 as punitive damages on account of the gross negligence, apathy and callousness on the part of the Opponent Company," the statement said.

"Thus, the total claim is for a sum of Rs.639,95,70,000," it added.

The Food Safety and Standards Authority of India (FSSAI), India's apex food regulator, had asked Nestle to recall Maggi from shelves in early June after the samples were found to contain elevated levels of lead and misleading labelling of monosodium glutamate presence.

Published on August 12, 2015 08:12