Nestle, the owner of Maggi noodles brand, has won in a way. Apex consumer complaint redressal body NCDRC has rejected the government’s plea seeking compensation of Rs 640 crore from consumer goods maker Nestle in the ‘Maggi’ case. According to Bhasha news, the government had alleged before the National Consumer Disputes Redressal Commission (NCDRC) in 2015 that Nestle was indulging in unfair trade practices in the production and public sale of dangerous and defective Maggi noodles.
Two petitions rejected
The NCDRC rejected two petitions filed by the consumer affairs ministry seeking compensation of Rs 284.55 crore and punitive damages of Rs 355.41 crore. Nestle’s popular noodles product Maggi was banned by the Food Safety and Standards Authority of India (FSSAI) in June 2015 for allegedly containing lead above permissible limits. The government then approached the NCDRC, forcing Nestle to withdraw the product from the market.
Dismissed in favor of the company under the order
Nestle has informed the stock markets about the relief received from the Consumer Commission. It said the complaint filed by the Government of India, Department of Consumer Affairs, before the NCDRC in 2015 was dismissed in favor of the company by the Commission vide its order dated April 2, 2024. The government had taken action for the first time under Section 12-1-D of the Consumer Protection Act in the Maggi case.
Know what was the matter
Under this section, both the Center and the State have the power to file complaints. Food safety regulator FSSAI had banned Maggi noodles after high levels of lead were found in its samples, terming it ‘unsafe and dangerous’ for human consumption. However, Maggi re-entered the market after five months in November 2015.
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