NCDRC Dismisses the Government’s Appeal Against Sale of Maggi Noodles

NCDRC dismisses the government’s appeal against Nestle India regarding claimed unfair practices in the sale of Maggi noodles, as confirmed by the company on Thursday.

In 2015, the Department of Consumer Affairs filed a complaint with the NCDRC claiming that Nestle doing unfair trade practices by producing and selling unsafe products to consumers.

However, on April 2, 2024, the NCDRC ruled in favor of Nestle India and rejected the complaint. The government looks for compensation of Rs 284.55 crore and penal damages of Rs 355.41 crore.

The government, in its formal 47-page complaint submitted to the consumer court, claims that Nestle is careless about the health and welfare of millions of consumers in pursuing higher profits.

The government’s wrong stand up after the Food Safety and Standards Authority of India (FSSAI) initiated measures against Maggi in 2015, due to elevated lead levels in certain samples and insufficient labeling of monosodium glutamate (MSG), also commonly referred to as Ajinomoto.

NCDRC dismisses the government's appeal, NCDRC

Despite the initial bans and significant financial setbacks of approximately Rs 450 crore for Nestle, subsequent tests conducted in India and overseas confirmed the safety of Maggi noodles. As a result, the government took the step of complaining to the NCDRC.

This instance represents the initial utilization of a provision in the long-standing Consumer Protection Act by the Consumer Affairs Ministry to gather a company before the NCDRC. While the NCDRC typically responds to consumer complaints, the legislation also permits the government to complain.

The government’s appeal claimed that Nestle misled Indian consumers by promoting Maggi as a nutritious food item with the slogan “Tasty Bhi, Healthy Bhi.”

Maggi quickly returned to the market following clearance by government authorities five months after the ban was implemented.


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