Latest in Maggi Fiasco:
Government Sues Nestle for Unfair Trade Practices
The recent twist in the Maggi fiasco has again landed
Nestle in troubled waters as the Government has sued Nestle for Rs. 639 crores
over alleged unfair trade practices.
Indian Daily, The Hindu on August 12 reported that the
Government had filed a class action suit against Nestle seeking Rs. 639 Crores
in damages for alleged unfair trade practices, false labelling and misleading
advertisements.
Since April, 2015 Nestle has been in rumpus over
allegations of Maggi noodles containing lead and monosodium glutamate (MSG) in
excess of permissible limits. Subsequently, Maggi noodles have been banned in
several Indian states. Moreover, Bollywood superstars like Madhuri Dixit, Amitabh
Bachchan and Preity Zinta who endorsed Maggi noodles were also served with
legal notices for misleading advertisements.
Reportedly, the recent move of Government comes as a
result of the impugned product misleading public by claiming Maggi to be healthy
for children and the claimed damages include penal damages and takes into
account annual profit and sales of the company through its entire range of
Maggi products.
As per the reports, if the Government wins the case
then the entire amount of damages would be assigned to the Consumer Welfare
Fund under the Consumer Affairs Department which would be used for the welfare
of consumers.
Bombay High Court Lifts Ban on Maggi
On one hand where Government is suing Nestle and
claiming hefty penalty from it on the other hand Bombay High Court has ruled in
favour of Maggi on August 13 in the case of M/s Nestle India Limited v. The
Food Safety and Standards Authority of India and Ors. (Writ Petition (L) No.
1688 of 2015). The Court in the case set aside the ban order imposed by
FSSAI on Maggi noodles and remarked the impugned order as ‘arbitrary, unjust and violative of Article 14 of the Constitution’.
The Bench has also directed re-testing of Maggi samples
on the grounds that labs in which samples were earlier tested were not
authorized to test for lead and mandatory testing procedure were also not
followed.
Conclusion
Nestle definitely has reasons to cheer as well as
weep. Nestle Maggi noodles a leading edible product in India has faced a lot of
turbulence in the recent months and its fate still remains undecided. Though
the recent order of Bombay High Court raises significant concerns regarding testing
procedures and methods followed by the food regulator in India.
Indian Daily, Indian Express reports that if
re-testing of Maggi noodles as directed by the Bombay High Court is cleared by
the Court then Nestle may consider filing a defamation suit against FSSAI for
allegedly acting in an arbitrary and non-judicious manner in the matter.
Sources:
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