Top consumer complaint redressal body NCDRC has given big relief to FMCG company Nestle.
In fact, the government’s petition seeking compensation of Rs 640 crore from Nestle in the Maggi case has been rejected.
The NCDRC rejected two petitions filed by the consumer affairs ministry seeking compensation of Rs 284.55 crore and punitive damages of Rs 355.41 crore.
Nestle has informed the stock markets about the relief received from the Consumer Commission. The company said- The complaint filed by the Government of India, Consumer Affairs Department before the NCDRC in 2015 was rejected by the Commission in favor of the company under its order dated April 2, 2024.
Meanwhile, the share price of Nestle India on Thursday was Rs 2550. There was a slight decline in the stock as compared to a day earlier.
what is the matter
The government had alleged before the National Consumer Disputes Redressal Commission (NCDRC) in 2015 that Nestle was indulging in unfair trade practices in the production and public sale of dangerous and defective Maggi noodles.
There was an uproar over lead
Nestle’s popular noodles product Maggi was banned by the Food Safety and Standards Authority of India (FSSAI) in June 2015 for allegedly containing lead above permissible limits.
The government then approached NCDRC, forcing Nestle to withdraw the product from the market.
The government had taken action for the first time under Section 12-1-D of the Consumer Protection Act in the Maggi case. Under this section, both the Center and the State have the power to file complaints.
Food safety regulator FSSAI had banned Maggi noodles after high levels of lead were found in its samples, terming it ‘unsafe and dangerous’ for human consumption.
However, Maggi re-entered the market after five months in November 2015.