NCDRC notice to Nestle, orders fresh Maggi sample testing

Accuses the company of false labelling and giving misleading advertisements

The apex consumer court on Monday issued a notice to Nestle India Limited on a Rs 640-crore suit against it by the Centre for alleged unfair trade practices and other charges pertaining to Maggi noodles. It also directed the government to test the samples afresh at accredited labs.

A Bench of the National Consumer Disputes Redressal Commission headed by V K Jain admitted the Centre's plea, which also accused the company of false labelling and giving misleading advertisements.

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Taking note of the Bombay High Court's August 13 judgment quashing the orders of the Indian food regulators banning the nine variants of instant noodles in the country, the Bench directed the Centre to test samples afresh by "accredited labs".

"The high court has quashed your (Centre's) order on the ground that laboratory were not accredited and recognised.... Second, you did not follow correct procedure," the Bench said, adding that "you (Centre) have to satisfy whether you had followed the right procedure" in procuring the reports.

Additional Solicitor General Sanjay Jain, appearing for the Centre, however, said there is no prescribed standard as such but it is up to the food authority to decide. However, the NCDRC Bench said that this practice has been termed by the High Court as arbitrary. The Centre said that in this case, the main question is whether the company has been selling products which, in the "temporarious guidelines", are not right. "As on today, what fresh material do you have to show as the earlier has been rejected by the high court," the Bench said.

It posted the matter for next hearing for September 30.

In its petition, the Centre has sought a direction to the company to deposit Rs 284.55 crore in the Consumer Welfare Fund for defective and hazardous goods sold and unfair trade practice.

"This commission be pleased to direct the opponent company (Nestle India Limited) to deposit in the Consumer Welfare Fund Rs 355.40 crore as punitive damages," the Centre said in its complaint before the commission.

The Centre has also sought an interest of 18 per cent per annum on the amount claimed by it in the complaint till the date of actual payment of the total amount.