Nestle Cleared: NCDRC Dismisses Government Plea

5 Apr 2024 , 10:42 AM

Nestle India announced on Thursday that the Central government’s appeal against the business, which claimed that it was engaging in “unfair trade practices” by selling Maggi noodles, had been rejected by the National Consumer Dispute Redressal Commission.

The NCDRC received a complaint from the Department of Consumer Affairs in 2015, claiming that the business engaged in unfair trade practices by producing and offering for sale dangerous and defective products to the general public.

On April 2, 2024, the NCDRC rejected the Nestle India case.

The government had demanded punitive damages of ₹355.41 Crore and compensation of ₹285 Crore at the time.

The Centre had alleged in its 47-page case filed in the consumer court that Nestle had jeopardised millions of consumers’ health and welfare in an attempt to increase profits.

Prior to Center’s complaint filing, the FSSAI action took place. In 2015, the Food Safety and Standards Authority of India (FSSAI), India’s food safety agency, also took action against Maggi after discovering excessive amounts of lead in the samples it examined. Additionally, it discovered that the label for monosodium glutamate, or ajinomoto, MSG, was incorrect.

Subsequent testing conducted in India and beyond revealed the noodles’ safety. Maggi was prohibited because to an FSSAI action, and the firm suffered a ₹450 Crore loss. More than 30,000 tonnes of Maggi noodles had to be destroyed.

The Centre then complained to the NDCRC after this.

With the action taken by the government against Nestle India, the Consumer Affairs Ministry used a section of the nearly four-decade-old Consumer Protection Act to drag a firm before the NCDRC for the first time. NCDRC typically takes action in response to consumer complaints. Nonetheless, the government is able to file a complaint under a provision of the Consumer Protection Act of 1986.

In its suit, the government charged Nestle with deceiving Indian consumers by presenting Maggi as a nutritious food item with the slogan “Tasty Bhi, Healthy Bhi.”

But five months after it was outlawed, Maggi was back on the market thanks to government clearance.

For feedback and suggestions, write to us at [e-mail]