Maggi: Indian Govt Seeks Damages From Nestle India

By M.Santhiran NEW DELHI, Aug 12 (Bernama) -- The Consumer Affairs Department of India has filed a complaint against Nestle India with the National Consumer Disputes Redressal Commission (NCDRC) seeking damages of 6.4 billion rupees (about US$100 million) alleging that the company sold unsafe and hazardous products to consumers endangering millions of people. The department who filed the action on behalf of millions of Indian consumers, also alleged the company indulged in misleading and deceptive advertisements and resorted to unfair trade practices to earn "unjust profits". "In the complaint the department has appealed to the apex commission to direct Nestle India to deposit the amount in Consumer Welfare Fund as permissible under the Consumer Protection Act," reported Times of India. The department further sought the commission to impose 18 per cent interest on the damage claimed until the actual payment was made by the firm. The department in its complaint also stated that the claim for damage could increase as and when more disclosures and findings about the "unsafe" products surface. In its statement of claim, the department stated the punitive/ exemplary damages were significant in the present case and were intended to reform and deter the opponent and other food companies from engaging in conduct similar to that of Nestle. The plaintiff (consumer affairs department) added this action would ensure that the common public did not suffer and was not helpless to protect its health and wellbeing. In a statement to the Bombay Stock Exchange late last month, Nestle India reported a net loss of 644 millions rupees (about US$9.9 million) in the three months ending in June, compared with a 2.8 billion rupees (about US$43 million) profit during the same period last year. Since the crisis erupted in India, food safety authorities in other countries, including United Kingdom and Australia have tested made-in-India Maggi noodle samples, found that the lead levels were below permissible limits, and allowed their sale to continue. -- BERNAMA