India’s government is seeking damages of nearly US$100 million from Nestle SA for “unfair trade practices” after the nation’s food safety watchdog banned its hugely popular Maggi noodles brand.
The government yesterday said that it has filed a suit with the country’s top consumer court for 6,400 million rupees (US$102 million) in damages from the Indian arm of the Swiss food giant.
India’s food safety watchdog in June banned Nestle from making or selling noodles in the country after tests by some states found lead levels exceeded statutory limits.
Nestle has withdrawn the product in India, but continues to sell it elsewhere and has always denied the charge.
“We filed the complaint with the National Consumer Disputes Redressal Commission [NCDRC] yesterday and have sought around 6,400 million rupees in damages,” Indian Ministry of Consumer Affairs Additional Secretary G. Gurcharan said.
“Our complaint is over their unfair trade practices and the court will now issue them notices to hear their response,” Gurcharan added.
A Nestle India spokesman said the company had not yet received official notice about the complaint with the NCDRC, a semi-judicial body that has the power to fine companies.
“We shall be able to provide substantive response after we receive the official papers,” Himanshu Manglik said.
Nestle India is challenging the ban on Maggi noodles in the Mumbai high court.
It had been selling the brand for more than three decades in India and had 80 percent of the country’s instant noodle market before the ban. Several celebrities have endorsed Maggi over the years, including Bollywood superstar Amitabh Bachchan.
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