India’s 640-Crore Class Action Suit Against Maggi to be Heard on Friday

Mangalore Today News Network

New Delhi, Aug 12, 2015: India’s claim for 640 crores or 99 million dollars in damages from food group Nestle after a food scare involving Maggi noodles will be heard on Friday by the country’s top consumer forum.

The claim, made on behalf of Indian consumers, was not filed through the courts but with the National Consumer Disputes Redressal Commission (NCDRC), which has semi-judicial powers and will decide on the merits of the case and the size of any damages.

Nestle has been accused of unfair trade practices in the first case that is being seen as a sort of class-action suit against a multinational.

A Nestle spokesman in India said the company has not received any official notification about the claim.

In June, the country’s food safety regulator banned Maggi as "unsafe and hazardous for human consumption" after excessive amounts of lead were reported in samples tested in Uttar Pradesh. Nestle was also accused of violating labelling rules and misleading customers by declaring the noodles do not contain MSG or added monosodium glutamate (MSG), a taste enhancer.

Nestle has complied with a nationwide recall of the instant noodles while asserting its snack is safe and challenging the ban in the Bombay High Court where a verdict is due soon.

Last week, the Food Safety and Standards Authority of India (FSSAI) said it had not given any clean bill of health for the popular snack despite Goa finding no evidence of excessive lead in samples.

An official in the Department of Consumer Affairs was quoted by news agency IANS as alleging that the class action suit also seeks compensation because Maggi Oat Noodles were sold without approval from food regulators.

 

Courtesy: NDTV