The government will seek Rs. 426 crore as damages from the Indian unit of Swiss giant Nestle for allegedly indulging in unfair trade practices and misleading advertisements related to Maggi.
Seeking financial penalties among other actions, the Consumer Affairs Ministry will soon file a complaint against the company before the National Consumer Disputes Redressal Commission (NCDRC).
Describing the alleged lapses related to food safety standards in Maggi noodles as a “serious issue”, Consumer Affairs Minister Ram Vilas Paswan had earlier said the NCDRC would investigate the matter and take appropriate action.
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For the first time, the government is taking action under Section 12-1-D of the Consumer Protection Act, under which both the Centre and States have powers to file complaints.
In June, food safety regulator FSSAI had banned Maggi noodles after it found excess level of lead in samples, terming it as “unsafe and hazardous for human consumption.”