Maggi’s legal battle with NCDRC to continue

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| Monday, November 23, 2015 - 15:28
First Published |
Maggi’s legal battle with NCDRC to continue

NCDRC to fight it out with Maggi

Nestle India re-launched Maggi noodles in the market on November 9, 2015 after fulfilling the conditions set by Bombay High Court which lifted the ban imposed by FSSAI and Maharashtra FDA. 
 
Since then it has been a win-win situation for the company. Nestle has sold over 3.3 crore packs of Maggi across 350 towns in India ever since it hit the racks ten days ago.
 
The analyst presentations given by Nestle mention its current sales at 1.2 lakh outlets through 724 distributors.
 
On the financial front, Nestle India had borne an exorbitant cost of Rs 476.2 crore by destroying 34,663 tons of the noodles when ‘excessive’ lead had been found in its samples. The company, however, aims to achieve back its stability and double-digit growth.
 
But unfortunately, the Government will continue to pursue its Rs 640-crore class action suit filed in National Consumer Disputes Redressal Commission (NCDRC), against Nestle India. The suit was filed in August seeking damages for alleged unfair trade practices, false labeling and misleading advertisements. The department had sought Rs 284.45 crore in basic damages and Rs 355.50 crore in punitive damages. Thus a total penalty of Rs 639.95 crore was imposed on the Swiss MNC.
 
In the previous hearing of NCDRC, Nestle had been ordered to withdraw 100 samples of Maggi from the stock seized in Uttar Pradesh for testing. 
 
The next hearing will take place on November 30. 
 
 

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