Blow To Nestle With $100M Charge From India GovernmentJust In

August 12, 2015 15:51
Blow To Nestle With $100M Charge From India Government

India Government is suing Nestle for $100m (£64m) over "unfair trade practices" with Maggi noodles. The complaint is that Nestle adopted misleading advertisements related to Maggi noodles products, through which damage was caused to Indian consumers.

Claim on behalf of Indian consumers

The claim that was made on the behalf of Indian consumers was filed with the National Consumer Disputes Redressal Commission (NCDRC) with semi-judicial powers.

A Nestle spokesman told the Reuters that Nestle would provide substantive response only after receiving a n official notice about the complaint filed to the NCDRC.

Also read: Nestle India Glides Into Loss Due To Maggi Ban

Maggi ban

After the food safety regulators in India accused Nestle with non-compliance with food safety laws, Maggi was banned in the country. It was a most popular snack in India before the ban. Instant Maggi noodles were banned due to presence of "unsafe and hazardous" amounts of lead.

This was challenged at the Bombay high court by Nestle, which says that its product is safe to consume. However, Nestle destroyed 400m tonnes of Maggi products already. Nestle contributed to 80% of India's instant noodles market.

The verdict from Bombay high court is expected soon. Although the court has reserved its order, suggested the re-testing of Maggi noodles. This was agreed by Nestle, while the response from the safety regulator was negative.

- Sumana

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Tagged Under :
Nestle  Maggi ban  Maggi noodles  food safety