The government on Wednesday slapped a fine of Rs 640 crore on Nestle India in lieu of unacceptable levels of lead found in Maggi and misleading advertising.
A day after the government filed a Rs 640-crore class action suit against Nestle India before consumer redressal forum NCDRC, the company today said it is disappointed with the "unprecedented step".
"We are disappointed with the unprecedented step of filing of a complaint before the National Consumer Disputes Redressal Commission (NCDRC) against Nestle India," the company said in a statement.
Based on newspaper reports it appears that the complaint makes similar allegations which were made to ban the product on June 5, 2015. These issues are awaiting judgment by the Hon'ble Bombay High Court, it added.
On Wednesday, the Consumer Affairs Ministry had flied a case before the consumer forum NCDRC seeking Rs 284.45 crore in basic damages and another Rs 355.50 crore in punitive damages totalling Rs 639.95 crore from the Swiss giant.
In the petition, the ministry said it is in the process of "tabulating further damages" and will seek additional damages when further facts and data emerges.
The company, however, insisted that it maintained "the highest standards of food quality and safety in the manufacture of all its products" and "have a stringent programme to test the ingredients that go to make Maggi noodles".
Nestle India further said in recent months, it had tested over 2,700 samples of Maggi noodles by several accredited laboratories both in India and abroad and each one of the tests showed lead to be far below the permissible limits.
"In addition Maggi noodles made in India have been tested and found to be safe for consumption by the authorities of several countries across the world," the company claimed.
Government says penalty on Nestle India can go beyond Rs 640 crore
Government's claim from Nestle for selling "defective and hazardous" Maggi noodles may exceed Rs 640 crore as it is tabulating further damages to be sought, even as the company termed the class action suit as disappointing and an unprecedented step.
Nestle, which had to recall the popular noodles brand after orders from the food safety regulator FSSAI, is the first foreign firm in India to face a class action suit, which was filed by the government yesterday under an hitherto unused provision of the three-decade old Consumer Protection Act.
The Consumer Affairs Ministry has flied a 45-page complaint before the National Consumer Disputes Redressal Commission (NCDRC) to seek Rs 284.45 crore in basic damages and further Rs 355.50 crore in punitive damages, resulting in total damages of Rs 639.95 crore sought from the Swiss giant.
The first hearing of the case is expected on August 14.
The government also wants Nestle India to pay interest at a rate of 18% per annum till the date of actual payment, while it has also asked the consumer forum to order the company to take remedial measures for wrong labelling and misleading advertisements.
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